FIN 351 CHAPTER 6 QUIZ 51 TO 55

FIN 351 CHAPTER 6 QUIZ 51 TO 55

51. When analyzing an industry, individual companies seem to stand out for their superior performance

52. When studying an industry, it is difficult to determine the best and worst performing companies in that industry

53. Companies with consistently high returns on equity usually are highly leveraged to take advantage of the large profit margins

54. Rotational investing is defined as the process by which investors rotate out of losing stocks and into new stocks

55. Rotational investors study the business cycle and invest in companies that are likely to benefit from the predicted movements of the economy

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