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"A customer buys pharmaceutical and utility stocks in his portfolio. This portfolio would be best characterized as:"

1 Answer

1 vote

Answer:

Defensive Portfolio

Step-by-step explanation:

Defensive portfolio consist of stocks that are protected from the market movement forces such that they perform acceptably well both during good and bad economic times, much unlike cyclical stocks. The companies within the portfolio are those that manufacture and produce essential goods and services and therefore will also thrive when the economy is in a difficult state.

Many defensive portfolio companies offer dividends with the effect of reducing capital losses.

answered
User Yuriy Zubarev
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