SIE Exam Question 72: Answer and Explanation

Question: 72

Which of the following is an example of a company in the defensive sector?

• A. Manufacturing
• B. Automobile
• C. Computer
• D. Pharmaceutical

Correct Answer: D

Explanation:

A pharmaceutical company would be categorized as defensive, providing products that are needed and will be purchased by individuals regardless of the state of the economy. Manufacturing and automobile companies would be cyclical, and a computer company would be growth.