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10 Cards in this Set
- Front
- Back
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Which of the following is least likely to involve industry analysis: A. Sector rotation strategy B. Top down investing C. Tactical asset allocation strategy |
C. |
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A sector rotation strategy involves investing in a sector by: A. Making regular investments B. Investing in a pre selected group of sectors on a rotating basis C. Timing investment to take advantage of business cycle conditions. |
C. |
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Which of the following info. about a co. would most likely depend on industry analysis: A. Dividend policy B. Competitive environment C. Trends in corporate expenses |
B. |
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Which industry classification system uses a three-tier classification system: A. Russel Global Sectors B. Industry classification benchmark C. Global industry classification standard |
A. |
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In which sector would a manufacturer of personal care products be classified: A. Health care B. Consumer staples C. Consumer discretionary |
B. |
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Which of the following statements about commercial and government industry classification systems is most accurate: |
Commercial classification systems are generally updated more frequently than government classification systems. |
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Which of the following is NOT a limitation of the cyclical/non cyclical descriptive approach to classifying companies? A. many include private for profit companies B. Business cycle sensitivity is a discrete phenomenon rather than a continuous spectrum. C. A global co. can experience Econ. expansion in one part of the world while experiencing recession in another part. |
B. So A and C do limit. |
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A company that is sensitive to the business cycle would most likely: A. Not have growth opportunities B. Experience below average fluctuation in demand C. Sell products that the customer can purchase at a later date if necessary |
C. |
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Which of the following factors would most likely be a limitation of applying business cycle analysis to global industry analysis: A. Some industries are relatively insensitive to the bus. cycle B. Correlations of security returns between different world markets are relatively low C. One region or country of the world may experience recession while another region experiences expansion |
C. |
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Which of the following statements about peer groups is most accurate: A. Constructing a peer group for a co. follows a standardized process B. Commercial industry classification systems often provide a starting point for constructing a peer group C. A peer group is generally composed of all the co. in the most narrowly defined category used by the commercial industry classification system |
B. |
