Stocks Whose Price Movements Tend to Follow the Business Cycle

question 124

Multiple Choice

Stocks whose price movements tend to follow the business cycle are called:

• A) cyclical stocks
• B) defensive stocks
• C) speculative stocks
• D) income stocks
• E) tech stocks

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Definitions:

Arousal

A state characterized by both physical and mental responsiveness or awareness, commonly linked with heightened alertness and an accelerated heartbeat.

Lust

An intense and passionate desire, often used in the context of sexual attraction.

Interdependence Theory

A psychological framework suggesting that the quality of relationships depends on the outcomes individuals perceive they could achieve through those relationships versus alone.

Investments

Allocation of resources, such as time, money, or effort, with the expectation of achieving a future return or benefit.