A good way to reduce macro risk in a stock portfolio is to invest in stocks that:
A) have only specific risks.
B) have diversified away the macro risk.
C) have low exposure to business cycles.
D) pay guaranteed dividends.

Question

Quizplus · Accepted Answer

Investing in stocks with low exposure to business cycles can help reduce macro risk, as these stocks are less affected by economic downturns and fluctuations.

A Good Way to Reduce Macro Risk in a Stock