Series 79 practice questionmediumIndustry Cyclicality
Which of the following industries is MOST likely to be classified as cyclical?
- AAutomobiles✓ Correct answer
- BUtilities
- CHealthcare
- DConsumer staples
Explanation
Why A — Automobiles
Automobile sales are heavily tied to economic cycles, rising and falling with consumer spending. Utilities, healthcare, and consumer staples are generally defensive, showing less variability with the cycle.
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