What Do the Axes on the Morningstar Style Box Indicate

question 17

Multiple Choice

What do the axes on the Morningstar Style Box indicate?

• A)The vertical axis shows whether the mutual fund holds the stocks of large,medium,or small capitalized companies.
• B)The horizontal axis is based on company valuation,whether the stocks are from value-based companies (based on the price/earnings ratio),growth companies,or a blend of value and growth.
• C)Both options are correct.
• D)Neither option is correct.

---

Definitions:

Factor

An element contributing to a particular result or situation.

Cash Cycle

The period between the outlay of cash for goods and services and the cash recovery from sales.

Credit Sales

Sales made by a business where the payment is deferred to a later date, often involving credit terms.

COGS

Stands for Cost of Goods Sold and refers to the direct costs attributable to the production of the goods sold by a company.