1.Shares of companies that have earnings that closely follow the trend of the state of economy and general level of business activity is best described as:

A. Speculative stock.

B. Defensive stock.

C. Cyclical stock.

D. Balanced stock.

E. Growth Stock.

2) The highest increase in the price of a diversified common equity unit trust fund would likely to be experienced when there is:

A. Unexpected corporate earnings growth.

B. Unexpected increase in corporate tax rate.

C. Unexpected inflation.

D. Expected increase in the base lending rate.

E. Expected dividends are paid.