CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

During recessions, ______ stocks tend to underperform ______ stocks.

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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