CFA Practice Question

There are 191 practice questions for this study session.

CFA Practice Question

The branded pharmaceuticals industry is a ______ industry.
A. cyclical
B. defensive
C. growth
Explanation: Demand for most health care services does not fluctuate with the economic cycle, but demand is not strong enough to be considered "growth."

User Contributed Comments 3

User Comment
CodyR Branded pharmaceuticals seem like they would be a luxury good when compared to generics. Wouldn't that make them cyclical? Or at least not defensive?
igorgim Branded pharms aren't luxury. It's famous product, which consumers buy to decide their daily problems (for example: headache, etc..)
edrei7 The price differences between branded and generic meds make little to no impact whether you are in a recession or in an expansion. Think about it, all those years living most of the time not knowing whether your country is in a recession or in an expansion, have you deciding choosing a generic med over a branded one because of it? I have never.
You need to log in first to add your comment.