If an Industry Is Ranked Number One,based on Price Performance

question 5

Multiple Choice

If an industry is ranked number one,based on price performance of the S&P Industry Stock Indexes,an investor

• A)cannot necessarily expect that same industry to be ranked number one again next year.
• B)can usually depend on an industry to maintain its top ranking for five years or more.
• C)can expect that industry to do well over the next 10 to 20 years.
• D)can expect that industry to drop out of the top ten within five years.

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Definitions:

Estimated Line of Cost Behavior

A projection or forecast of how costs will change with different levels of activity.