A Rotational Investor Will Rotate Through Stocks That Perform Well

question 16

Multiple Choice

A rotational investor will rotate through stocks that perform well in different stages of the economy in which order (from trough to peak) ?

• A)Basic materials; consumer cyclical; consumer non-cyclical; household durable goods
• B)Consumer cyclical; basic materials; consumer non-cyclical; household durable goods
• C)Basic materials; household durable goods; consumer cyclical; consumer non-cyclical
• D)Household durable goods; consumer cyclical; consumer non-cyclical; basic materials
• E)Household durable goods; basic materials; consumer non-cyclical; consumer cyclical

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Definitions:

Variable Costing

An accounting method that only assigns variable costs to inventory, excluding fixed manufacturing overhead costs.

Unit Product Cost

The total cost (both direct and indirect) associated with producing a single unit of product.

Break-even

The point at which total costs and total revenue are equal, meaning no net loss or gain is incurred by the business.

Sales Dollars

Represents the total revenue generated from the sale of goods or services before any expenses are subtracted.