Equity Investments Q213

0. In the event of expected economic slowdown and diminishing growth rates with respect to revenues and profits, an equity fund manager will most likely make changes to the portfolio by:

  • Option : B
  • Explanation : Non-cyclical companies produce goods or services for which demand remains relatively stable throughout the business cycle. The consumer staples sector exhibits relatively less economic sensitivity and thus tends to be over-weighted during economic slowdowns and when revenues and profits are expected to be under pressure.
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