Help
Course Catalog > Funds > 200
Funds 208: Examining a Stock Fund's Portfolio: Style Box Statistics

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!

Get a certificate for this quiz
Enter your name and email address below to receive certificate for this course. You will need this to confirm you have completed it.


Review your answers below to learn more.
1.
Price/earnings multiples tell you what?
Choose wisely. There is only one correct answer.
How much price risk a fund is taking on. The greater a fund's price/earnings multiple, the greater its price risk.
2.
A fund's number of holdings tells you how much sector risk a fund is taking on.
Choose wisely. There is only one correct answer.
False. The number of holdings tells you how much per-issue risk a fund is taking on.
3.
Sector weightings in a fund tell you how much price risk a fund is taking on.
Choose wisely. There is only one correct answer.
False. Sector weightings tell you the industries your manager favors.
4.
A fund's turnover rate tells you what?
Choose wisely. There is only one correct answer.
How frequently the manager trades the portfolio. Buy-and-hold managers will have lower turnover rates than managers who buy and sell stocks on short-term factors.
5.
Why should you study the funds in the average market capitalization section of Morningstar's style box in more detail?
Choose wisely. There is only one correct answer.
The funds differ in size. Further study can tell you which funds might perform better in different market conditions; for example, very-small-cap funds might do well in an environment that favors very small companies.