Business Cycle Risk exposure reflects a stock's sensitivity to unexpected changes in the growth rate of business activity. Stocks of companies such as retail stores that do well in times of economic growth have a higher exposure to Business Cycle Risk than those that are less affected by the business cycle, such as utilities or government contractors. Stocks can have a negative exposure to this factor if investors tend to shift their funds toward those stocks when news about the growth rate for the economy is not good.

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