Which one of the following stocks represents industries with below-average sensitivity to the state of the economy?
A) Financials
B) Technology
C) Food and beverage
D) Cyclicals

Question

Quizplus · Accepted Answer

Food and beverage stocks typically have below-average sensitivity to the state of the economy as they are consumer staples that are essential for everyday living and are less impacted by changes in economic conditions. Financials and cyclicals, on the other hand, are typically more sensitive to the state of the economy as they are directly impacted by changes in interest rates and consumer spending. Technology can vary, as some technology companies may be more sensitive to the state of the economy (e.g. those focused on consumer electronics), while others may be less sensitive (e.g. those focused on software or cloud computing).

Which One of the Following Stocks Represents Industries with Below-Average