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.

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Definitions:

Traditional

Referring to ideas, customs, or practices that have been passed down within a culture or society for generations, often contrasted with modern or innovative approaches.

Directs

Commands or instructions given with authority to guide or control actions.

Responsible

Being accountable or answerable for something, typically involving duty, ethics, or obligations.

Legitimate Power

Authority that is recognized and accepted, derived from a formal position or role within a hierarchy or institutional setting.