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LOS g: Explain and justify the use of equity investment style classifications and discuss the difficulties in applying style definitions consistently.
Q1. Which of the following is most accurate regarding growth stocks? Growth stocks are likely to:
A) outperform during an economic contraction and underperform during an economic expansion.
B) outperform during an economic contraction and outperform during an economic expansion.
C) underperform during an economic contraction and outperform during an economic expansion.
Q2. Which of the following is least likely to be a rationale for investing in small cap stocks?
A) Smaller firms are more likely to be underpriced than larger cap stocks with greater coverage.
B) The higher betas for small cap stocks indicate that their future returns should be higher.
C) Higher returns are more likely when starting from a smaller stock price base.
Q3. Which of the following is the primary risk of a market-oriented equity investing approach?
A) The tilt to growth is too strong.
B) The tilt to value is too strong.
C) The portfolio must outperform broad market averages or investors will switch to low cost indexing strategies. | 
发表于 2009-3-6 17:34
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