n NISM Certifications
XV NISM Series XV
Medium

Which of the following is a defensive stock?

Practice question from NISM XV Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Automobile manufacturer

  2. Pharmaceutical company

    Correct answer

  3. C

    Airline company

  4. D

    Real estate developer

Why this is the answer

Defensive stocks provide stable returns regardless of economic cycles, as demand for essential products like healthcare remains consistent. Cyclical sectors like autos, airlines, or real estate are more sensitive to economic downturns.

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