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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.
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.
3.
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.
4.
Which type of fund is likely to be the most volatile?
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A small-cap growth fund. Funds that own expensive (growth) small companies are bound to be more volatile than those that own large, inexpensive (value) stocks or middle-of-the-road (blend) fare are.
5.
According to the Morningstar style box, a blended fund will include elements of _______.
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Both. A blended fund will include both.