Drop Down Options:

1. A (Company X / Company Y)

2. B (Company X / Company Y)

3a.. Company X is a ________ stock company known for its low ( Speculative / small -cap / large-cap / growth)

3b. risk, high quality, and market value of _________ ( between 1-2 billion / more than 10 billion / between 2-10 billion)

4a. Company Y is ______ stock company known for fluctuating ( income / speculative / large-cap / blue-chip)

4b. P/E ratios and _____ of high earnings. ( expectation / proven record)

5. ( T / F )

There are many types of common stock, each of which offers the investor different risks and rewards. Suppose you currently own stock in two different types of companies, Company X and Company Y. The chart below depicts the share values of Company X and Company Y's stock for the years 2000-2012. Based on what you know about the different company types, identify which line is more likely to correspond to which company. STOCK PRICE 200 160 120 80 40 B 0 2000 2002 2004 2006 2008 2010 2012 YEAR A Company X Company Y B Company X Company X is a stock company known for its low risk, high quality, and market value of Company Y Company Y is P/E ratios and stock company known for fluctuating of high earnings. True or False: One way of protecting against the kind of stock-value losses suffered by most stocks during the 2009 recession is by investing in cyclical stocks. True False