Equity Investments - Equity Investments Section 2
31. Which of the following companies would be best classified as a consumer discretionary company?
- Option : C
- Explanation : Consumer discretionary companies derive a majority of revenue from the sale of consumer-related products or services for which demand tends to exhibit a relatively high degree of economic sensitivity. An apparel business would be an example of a business activity that falls into this category.
32. Which of the following companies is most likely to be categorized in the utilities sector?
- Option : C
- Explanation : The GICS classification is based on: company -> sub-industry -> industry -> industry -> group -> sector.
34. The aircraft manufacturing industry can most likely be characterized as:
- Option : A
- Explanation : Since there are only two major companies (Boeing and Airbus), this industry can be classified as concentrated.
35. All the statements below are correct about Russell Global Sectors, except:
- Option : B
- Explanation : RGS contains nine sectors whereas GICS contains 10 sectors because telecommunication service is included as part of utilities sector.
