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Basic Question 4 of 6

During recessions, ______ stocks tend to underperform ______ stocks.

A. growth, value
B. large, small
C. non-cyclical, cyclical

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain how the phase of the business cycle affects short-term and long-term earnings growth expectations;

explain the relationship between the consumption hedging properties of equity and the equity risk premium;

describe cyclical effects on valuation multiples;

CFA® 2025 Level II Curriculum, Volume 6, Module 37.