Question #19
Reading: Reading 39 Economics and Investment Markets
PDF File: Reading 39 Economics and Investment Markets.pdf
Page: 7
Status: Unattempted
Correct Answer: B
Question
Corporate earnings from which of the following sectors would be most sensitive to business cycle?
Answer Choices:
A. non-cyclical
B. Consumer non-discretionary
C. Consumer durable
Explanation
Earnings of companies in cyclical industries such as consumer durable or consumer
discretionary would be more sensitive to business cycle as opposed to companies in non-
cyclical industries such as consumer non-discretionary.