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Management · Q165

Financial Management

Graduate and Post Graduate · Management · question 165

Q165

___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.

A.
portfolio management
B.
market timing
C.
momentum strategy
D.
sector rotation
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Sector rotation shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas. Sector rotation is a theory of stock market trading patterns. In this context, a sector is understood to mean a group of stocks representing companies in similar lines of business.