A Sector Fund Is a Mutual Fund That Tries to Maximize

question 106

True/False

A sector fund is a mutual fund that tries to maximize the degree of diversification.

---

Definitions:

Net Profit Margin Ratio

A financial metric indicating the percentage of revenue remaining as profit after all expenses, taxes, and costs have been deducted.

Cash Flow

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Liquidity Ratios

Financial ratios that measure a company's ability to meet its short-term obligations, such as current ratio and quick ratio.

Activity Ratios

Financial metrics used to measure a company's ability to convert different accounts within its balance sheets into cash or sales.