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Funds 207: Examining a Stock Fund's Portfolio: The Morningstar Style Box

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1.
According to the Morningstar style box, a value orientation means the manager buys stocks that are cheap.
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True. Though the stocks are cheap, they could eventually see their worth recognized by the market.
2.
What is a company's market capitalization?
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A company's size based on the market value of its shares. A company's market capitalization is simply its size based on the market value of its shares. The market cap measure is not directly tied to a firm's earnings or sales.
3.
The stock of which type of company is likely to be the least volatile?
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A large size company. Larger companies are often more established and tend to be more predictable than smaller companies; therefore, their stock prices tend to be steadier.
4.
The Morningstar style box does not summarize which of the following?
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How rapidly a fund manager buys and sells stocks. The style box provides a snapshot of the size and price of the stocks in a fund's portfolio. To get a feel for how rapidly a fund manager buys and sells stocks, check a fund's turnover rate.
5.
A blended fund, as shown by the Morningstar style box, will include elements of both growth and value orientations.
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True. A blended fund uses both.