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1.
Which of the following stocks performs well during a market downturn?
Defensive. During downturns, some companies do well because their services are needed at all phases of the business cycle.
2.
Why would a value investor watch for changes in operations at a corporation?
Changes in operations may drive up the company's stock price. The value investor looks for growth in a stock's price.
3.
Growth stocks are ________ to appreciate in price.
Expected. Since future performance is not guaranteed, growth status is determined by investor expectations. The investors use past performance as a guide.
4.
Blue chip stocks are not likely to be _______.
Volatile. Blue chip stocks are established and in demand.
5.
Income stocks would be most popular with _______.
Someone who wanted to meet current living expenses. The other two individuals would most likely choose a growth investment to meet their needs.