Kay Powers Wants to Diversify Her Portfolio by Investing in a Firm

question 38

Multiple Choice

Kay Powers wants to diversify her portfolio by investing in a firm that has the potential to earn above average profits compared to other firms in the economy.What type of stock is Kay thinking about adding to her portfolio?

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

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Definitions:

Multibranding

A strategy involving the marketing of multiple brands by a single company in the same market, enabling the diversification of offerings to appeal to different consumer segments.

Co-Branding

A strategic marketing partnership between two brands where they collaborate on a product or promotion, leveraging each other's brand strength to enhance perception and reach.

Multiproduct

Referring to a strategy or situation involving multiple products, typically by companies aiming to diversify offerings and cater to different consumer needs.

Product Life Cycle

The stages a product goes through from introduction to growth, maturity, and decline in the marketplace.