Exercise #4


Using the Sector Distribution Curve pictured here, answer the following questions.

2.) Which statement most accurately describes the Drug sector.

Your answer was B. The Sector Bullish Percent chart is in O's in oversold territory and the group is Unfavored. This is a sector that should be underweighted in the portfolio.

B. This is incorrect. The bullish percent is in O's since the sector name is listed in lowercase letters. However, the sector has not reached the oversold territory of 30% yet. The group is not Unfavored which would be shaded Red. The group is Average since it is shaded yellow.

Go back to the question.