CFA Practice Question

CFA Practice Question

Which of the following is most likely incorrect?
A. An example of a cyclical company would be a dairy producer.
B. A speculative company invests in risky projects.
C. A defensive company's stock is less affected by business cycles.
Explanation: The revenues of a dairy producer are not affected by the business cycle as food is a basic necessity rather than a luxury.

User Contributed Comments 0

You need to log in first to add your comment.