Sean Barber Wants to Invest in a Stock That Is

question 54

Multiple Choice

Sean Barber wants to invest in a stock that is relatively safe,suitable for conservative investors,and less speculative than other stocks.What type of stock best fits Sean's requirements?

• A)Midcap stock
• B)Cyclical stock
• C)Small-cap stock
• D)Blue chip stock
• E)Growth stock

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Definitions:

Return On Equity (ROE)

A financial ratio indicating the profitability of a firm relative to its equity capital.

Liabilities

Financial obligations or debts that a company owes to others, which need to be settled over time.

Assets

Economic resources owned or controlled by an entity, expected to produce value or benefit in the future.

Cycle Inventory

Inventory that is carried as a result of the production or purchase process, determined by the frequency of orders and the quantity of goods ordered each time.