Equity Investments Q189

0. Analyst 1: During recessions, consumers are more likely to defer purchases of products of defensive companies than of cyclical companies.
Analyst 2: During recessions, non-cyclical companies tend to outperform cyclical companies.
Which analyst’s statement is most likely correct?

Answer
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Option : B
Explanation : During recession, non-cyclical companies tend to outperform cyclical companies. Consumers are more likely to defer purchases of products of cyclical companies than of defensive companies.

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