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Essentials Of Investments
Found in: Page 396
Essentials Of Investments

Essentials Of Investments

Book edition 9th
Author(s) Zvi Bodie, Alex Kane, Alan Marcus, Alan J. Marcus
Pages 748 pages
ISBN 9780078034695

Short Answer

Which one of the following firms would be described as having below-average sensitivity to the state of the economy?

a. An asset play firm

b. A cyclical firm

c. A defensive firm

d. A stalwart firm


d. A Stalwart firm

See the step by step solution

Step by Step Solution

Step by Step Solution Step 1: Definition of Stalwart firm

The term ‘stalwart’ was popularized by Peter Lynch to describe a large and established company that offers a long term growth prospects.

Step 2: Explanation on Below Average sensitivity  

Since the stalwart firms are well established, non-cyclical firms they are relatively unaffected by recessions.

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