Course Catalog > Funds > 200
Funds 207: Examining a Stock Fund's Portfolio: The Morningstar Style Box

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
According to the Morningstar style box, a value orientation means the manager buys stocks that are cheap.
Choose wisely. There is only one correct answer.
True. Though the stocks are cheap, they could eventually see their worth recognized by the market.
2.
The stock of which type of company is likely to be the least volatile?
Choose wisely. There is only one correct answer.
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.
3.
According to the Morningstar style box, a blended fund will include elements of _______.
Choose wisely. There is only one correct answer.
Both. A blended fund will include both.
4.
What is a company's market capitalization?
Choose wisely. There is only one correct answer.
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.
5.
The Morningstar style box does not summarize which of the following?
Choose wisely. There is only one correct answer.
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.