Meagan Dubean manages a portfolio of 200 common stocks.Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.' Which of the following statements is true?

Question

Meagan Dubean manages a portfolio of 200 common stocks.Her staff classified the portfolio stocks by 'industry sector' and 'investment objective.'  Which of the following statements is true?

Quizplus · Accepted Answer

The statement "Electronics and Growth are independent" means that the performance of electronics stocks does not affect the performance of growth stocks, and vice versa. This is a true statement, as the two categories are not directly related to each other. The other options are not true, as they either suggest a relationship between the two categories or use terms (such as "collectively exhaustive") that do not apply to this situation.

Meagan Dubean Manages a Portfolio of 200 Common Stocks