Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Morningstar Risk measures how volatile funds are _______.
Relative to others in its category. Morningstar compares the risk of each fund with other funds in the same Morningstar category.
2.
Morningstar Risk describes the variation in a fund's:
Monthly returns. Morningstar Risk describes the variation in a fund's month-to-month returns, with an emphasis on downward variation.
3.
Morningstar Risk is based on the idea that investors are more concerned about _______.
The chance of losing money. Morningstar Risk is based on the idea that investors are more concerned about a probable loss than an unexpectedly high gain.
4.
What's the best way to use bear-market rankings?
To find funds that tend to do relatively well when the market falls. If you seek funds that offer a narrow range of returns, examine standard deviation. If you want funds that rarely underperform, look for low Morningstar Risk scores.
5.
Morningstar's bear-market rankings show you know how a fund performed during all time periods.
True. The bear-market rankings show you know how a fund performed only during certain time periods.
