CFA Practice Question

There are 136 practice questions for this study session.

CFA Practice Question

When the economy is expanding, ______ stocks tend to underperform ______ stocks.
A. growth, value
B. large, small
C. non-cyclical, cyclical
Explanation: Small stocks fluctuate more than large stocks. If the economy is expanding, small stocks tend to do better than large stocks.

User Contributed Comments 2

User Comment
janis36 "Non-cyclical stocks tend to underperform cyclical stocks" is also correct. When the cycle is in the upswing so are cyclical stocks.
negimofa I think A is less correct here as stocks can be cyclical to various factors depending on the industry they operate in
You need to log in first to add your comment.