An Investor Who Wants to Invest in a Particular Sector

question 63

Multiple Choice

An investor who wants to invest in a particular sector but does not have strong opinions about which stocks to purchase within that sector would be likely to choose a(n)

• A) balanced growth and income fund.
• B) mid-cap fund.
• C) exchange-traded fund that represents that particular sector.
• D) growth fund.

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Definitions:

Net Cash

The difference between a company's total cash inflows and outflows within a given period.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and investments, used to assess a company's growth projects and capital expenditure.

Net Cash

The difference between the cash inflows and outflows in a given period, indicating the net change in a company's cash position.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company, as reflected in its cash flows.