A Stock That Follows the Business Cycle of Advances and Declines

question 6

Multiple Choice

A stock that follows the business cycle of advances and declines in the economy is called a(n) ____________ stock.

• A) defensive
• B) cyclical
• C) growth
• D) income
• E) blue-chip

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Definitions:

Vroom's Expectancy Theory

A theory that proposes an individual's motivation is affected by the expectation that one's effort will lead to desired performance and the value of the reward associated with that performance.

Outcomes Of Behavior

The results or consequences that follow from one's actions or conduct.

Rewards

Benefits, compensations, or other forms of recognition provided to individuals or groups in response to their performance or behavior.

Equity Ratio

A financial metric used to measure a company's level of indebtedness by comparing total equity to total assets.