Question

19. The type of investment analysis that starts with company performance measures (like ratios), then moves to sector and industry analysis and finally macro trends is the _______________ approach.

Group of answer choices

a. top-down

b. bottom-up

c. technical

d. value

20. When comparing the value vs growth investing styles, which style tends to do better over the long term?

Group of answer choices

a. Value beats growth

b. Growth beats value

c. They both go in and out of favor but, over the long-term, they perform equally well

Answer 1

Answer 19:- Option (b) bottom-up

Explanation:- A bottom-up approach is going from individual to more complex systems. So, Bottom-up analysis is an investment analysis that starts with company performance measures (like ratios), then moves to sector and industry analysis and finally macro trends

Answer 20:- Option (c) They both go in and out of favor but, over the long-term, they perform equally well

Explanation:- When investing long term, some individuals combine growth and value stocks or funds for the potential of high returns with less risk. This approach allows investors to gain throughout economic cycles in which the general market situations favor either the growth or value investment style, smoothing any returns over time.