Exploring Stock Sectors and Industries Quiz

1 point(s)

Which sector is considered defensive and remains relatively stable during all phases of the business cycle?

Technology Sector

Correct Incorrect Correct answer

Health Care Sector

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Financial Sector

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Consumer Discretionary Sector

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1 point(s)

Commodities generally perform well during a recession due to increased demand.

True

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False

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1 point(s)

What is a characteristic of the Utilities Sector?

High growth

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Stable cash flows

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Cyclical

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Sensitive to consumer spending

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1 point(s)

Which asset class usually underperforms during the early expansion phase of the business cycle?

Stocks

Correct Incorrect Correct answer

Bonds

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Cash

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Real Estate

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1 point(s)

The Industrial Sector is generally considered to be defensive and remains stable during all phases of the business cycle.

True

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False

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3 point(s)

Match the sector with its predominant business cycle performance

Sort elements

Strong during expansions, weaker during contractions
Strong during expansions, weaker during contractions
Relatively stable during all phases of the business cycle

Technology

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Financial

Correct Incorrect Correct answer

Health Care

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3 point(s)

Match the asset class with its general performance during a recession

Sort elements

Typically underperform due to poor earnings and negative sentiment
Perform well as investors seek safer assets
Offer stability though with modest returns

Stocks

Correct Incorrect Correct answer

Bonds

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Cash	Correct Incorrect Correct answer

1 point(s)

Arrange these asset classes in ascending order of risk, starting with the lowest (put the lowest at the top).

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1 point(s)

Arrange these sectors based on the typical dividend yield, from lowest to highest (put the lowest at the top).

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1 point(s)

What is one concept or sector you found most interesting in this chapter, and how can you apply this knowledge in real-world investment decision-making?

This response will be awarded full points automatically, but it will be reviewed and possibly adjusted after submission.

Exploring Stock Sectors and Industries Quiz