Sector rotation
A) should always be carried out.
B) is never worthwhile.
C) is shifting the portfolio more heavily toward an industry or sector that is expected to perform well in the future.
D) can be implemented without cost.

Question

Quizplus · Accepted Answer

Sector rotation is the strategy of adjusting the allocation of a portfolio to favor sectors that are expected to outperform in the near future based on economic and market trends. It does not imply that it should always be carried out (A), that it is never worthwhile (B), or that it can be implemented without any cost (D), as there are usually transaction fees or tax implications involved.

Sector Rotation