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1.
If you own one fund run by Manager A, how many other funds of his or hers should you own if you value diversification?
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None. Managers generally have ingrained investment habits that they apply to every pool of money they run; they'll rarely use a growth strategy on one portfolio and a value strategy on another.
2.
If you have a lot of diversity among individual stocks, what does that say about your diversity in particular sectors of the market?
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It can't be determined. A diverse collection of stocks might actually share exposure to certain sectors. Tech is a good example of such a sector.
3.
If you own a lot of growth funds, chances are you're overweight in what sector of the market?
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Technology. Current growth managers lean toward tech stocks.
4.
In the Morningstar Style Box, which square would provide diversification to a large-growth fund?
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A small-value fund. The corners are the areas that show where diversification would be. A small-value fund would therefore offer the most of that.
5.
An online tool can help you find overlap in your portfolio.
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True. Firms such as Morningstar have special tools on their Websites to help you analyze your portfolio for overlap.