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.

Recognize opinions issued by auditors based on the conformity of financial statements with GAAP.

Determine the impact of segment reporting on financial transparency and decision-making.

Grasp the concept of market efficiency and its implications.

Understand the financial reporting process and the role of management and the audit committee.