- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 37. Economics and Investment Markets
- Subject 5. Equities and the Equity Risk Premium
CFA Practice Question
During recessions, ______ stocks tend to underperform ______ stocks.
B. large, small
C. non-cyclical, cyclical
A. growth, value
B. large, small
C. non-cyclical, cyclical
Correct Answer: A
Growth stocks tend to trade with a high P/E and a very low dividend yield. They tend to underperform value stocks during recessions.
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