A Sector Fund

question 2

Multiple Choice

A sector fund:

• A)tends to perform consistently from one year to the next.
• B)is usually highly diversified.
• C)rarely outperforms other types of funds.
• D)concentrates on investing in one industry or one commodity.
• E)is best evaluated by its past performance.

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Definitions:

Emission Permits

Emission permits are allowances given to companies, allowing them to release a specific amount of pollutants into the environment, used as a tool for regulating environmental impacts.

Environmental Quality

The condition of the natural environment and its ability to support life and activities, often measured by factors such as air and water purity, and biodiversity levels.

Property Rights

Legal rights to possess, use, and dispose of assets or properties.

Economic Outcomes

The results or consequences of economic activities, policies, or events, impacting wealth, resource allocation, and standards of living in a society.