The Following Is an Example of a Fundamental Active Equity

question 8

Multiple Choice

The following is an example of a fundamental active equity portfolio management strategy.

• A) Contrarian investing.
• B) Earnings momentum investing.
• C) Low P/E and low P/BV investing.
• D) Bottom up investing.
• E) Investing on the basis of calendar effects.

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Definitions:

EPS

Earnings Per Share, a metric that divides a company's profit by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Debt-to-Total-Assets Ratio

A financial ratio that indicates the proportion of a company’s assets that are financed by debt, used to assess financial leverage and risk.

Capital Structure

The mix of different types of debt and equity that a company uses to finance its overall operations and growth.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.