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In the Morningstar style box, all the small-cap funds are the same size.

Choose wisely. There is only one correct answer.

True

False

False. The funds vary dramatically in market capitalization; therefore, you should examine the size of each.

A fund's number of holdings tells you how much sector risk a fund is taking on.

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True

False

False. The number of holdings tells you how much per-issue risk a fund is taking on.

A fund's turnover rate is usually calculated _______.

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Once a year

Once a month

Daily

None of the above

Once a year. As a rule, turnover rates are calculated yearly.

Price/earnings multiples tell you what?

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How much sector risk a fund is taking on

How much price risk a fund is taking on

How much per-issue risk a fund is taking on

How much price risk a fund is taking on. The greater a fund's price/earnings multiple, the greater its price risk.

Sector weightings in a fund tell you how much price risk a fund is taking on.

Choose wisely. There is only one correct answer.

True

False

False. Sector weightings tell you the industries your manager favors.

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