All of the following statements are true with respect to the various ways that equity investments may ...

By Investopedia Staff AAA
Q:
All of the following statements are true with respect to the various ways that equity investments may be classified except:
a) Indexing is a form of a passive investment strategy.
b) From a U.S. investor point of view, international investing implies purchasing stocks domiciled all over the world, including the U.S.
c) Sector investing should be deemed as a complementary strategy to a well established portfolio.
d) Purchasing only stocks that exhibit a low P/E ratio is a form of "style" investing. 
A:
The correct answer is: b)
Global investing is the proper definition for investing in stocks from all over the world. International investing generally involves investing in securities domiciled outside of the investor's home country.

RELATED FAQS

  1. A portfolio hedge is purchased in the form of a spread ...

    First, calculate the net gains/losses under each probability. At 50, the value is: cost of the spread ($1 x 100 share put) ...
  2. Rennie Asada, CFA, is a portfolio manager with Martek Securities ...

    The correct answer is: a) The guiding principle behind Standard VI-B is to take care of clients first, and only after the ...
  3. Which of the following statements is (are) true with respect to price-earnings (P/E) ...

    The correct answer is: b) The reason choice I is true is because during a recession, corporate earnings will generally fall ...
  4. A manager is claiming that her stock picks, on average ...

    The correct answer is: d) 2005 CFA Level 1 LOS: 3.1.B.m
RELATED TERMS
  1. No results found.

You May Also Like

Related Articles
  1. No results found.
Trading Center