Sector Rotation

question 68

Multiple Choice

Sector rotation

• A) should always be carried out.
• B) is never worthwhile.
• C) is shifting the portfolio more heavily toward an industry or sector that is expected to perform well in the future.
• D) can be implemented without cost.

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Definitions:

Fraud

Willful misrepresentation aimed at obtaining an illicit or unearned gain, or to strip someone of their rightful legal privileges.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.

Defenses

Legal strategies and arguments used in court to justify or excuse an individual's actions or to challenge the validity of a lawsuit.

Securities Act

A federal piece of legislation enacted in 1933 that regulates the offer and sale of securities to protect investors from fraud.