A ________ stock comes from a company that makes consumer goods such as food and drugs that have fairly constant demand regardless of the state of the economy

A) blue chip
B) growth
C) defensive
D) cyclical
E) value stock

C
Explanation: C) A defensive stock is from a company that makes staples such as food and drugs that are not much affected by downturns or upturns in the economy. A blue chip stock is from a stable, older company with a good track record that pays dividends. A growth stock is from a younger company that is growing rapidly but is relatively unproven; its stock can increase rapidly, but it's also a risky investment. A cyclical stock is issued by a company that makes a product like cars or buildings that are strongly affected by upturns and downturns in the economy. A value stock is viewed as being priced lower than what it should be based on the earnings and financial performance of the company that issues it.