Anthony Edwards wants to diversify his portfolio by adding a stock that maintains stable earnings when the economy declines.What type of stock does Anthony want to add to his portfolio?
A)Defensive stock
B)Cyclical stock
C)Small cap stock
D)Blue chip stock
E)Growth stock

Question

Quizplus · Accepted Answer

Defensive stocks are those that provide consistent dividends and stable earnings regardless of the state of the overall stock market or economy, making them ideal for diversification in a declining economy.

Anthony Edwards Wants to Diversify His Portfolio by Adding a Stock