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Which of the following is an analyst most likely to classify as a defensive issue?
Suggested Answer: C
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the common stock of a utility company. The term ''defensive issue'' refers to a security that is least susceptible to swings in the business cycle.
12 comments · newest first
GE
Georgene
3 months ago
A is interesting too, but I feel C is safer for defensive issues.
BO
Bobbye
4 months ago
I agree, C makes sense. They provide essential services.
NG
Ngoc
4 months ago
I think C is the best choice. Utility companies are stable.
FL
Floyd
4 months ago
Wait, are we really calling utility stocks defensive? Seems odd!
LI
Lili
4 months ago
I agree with C, utilities are usually stable.
SA
Sage
4 months ago
D) a corporate bond? Not really a stock, though.
ST
Staci
6 months ago
I think B) a stock of a large company could also be considered defensive.
MA
Marquetta
6 months ago
C) the common stock of a utility company is definitely defensive.
MA
Mari
7 months ago
I’m a bit confused; I thought corporate bonds could also be considered defensive. But now that I think about it, C seems like the safest bet.
JA
Janine
7 months ago
I practiced a similar question, and I think defensive issues are typically related to essential services. So, I would go with C as well.
PA
Paola
7 months ago
I'm not entirely sure, but I remember something about defensive stocks being less sensitive to economic cycles. Could it be option B, the large company stock?
PR
Precious
7 months ago
I think a defensive issue is something that provides stable returns, so I'm leaning towards option C, the utility company stock.