A Hybrid Strategy Is One Where the Investor

question 24

Multiple Choice

A hybrid strategy is one where the investor

• A) uses both fundamental and technical analysis to select stocks.
• B) selects the stocks of companies that specialize in alternative fuels.
• C) selects some actively-managed mutual funds on their own and uses an investment advisor to select other actively-managed funds.
• D) maintains a passive core and augments the position with an actively-managed portfolio.

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Definitions:

Accumulated Depreciation

The cumulative total of depreciation costs noted for an asset since it was acquired.

Original Cost

The initial purchase price or acquisition cost of an asset or investment.

Statement of Cash Flows

It's a fiscal summary that tracks changes in balance sheet entries and the impact of income on cash and equivalents, sorting these modifications by operating, investing, and financing functions.

Indirect Method

A cash flow statement preparation method that adjusts net income for changes in non-cash accounts to calculate operating cash flow.