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Examveda

___________ shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas.

A. portfolio management

B. market timing

C. momentum strategy

D. sector rotation

Answer: Option D

Solution(By Examveda Team)

Sector rotation shifts the weights of securities in the portfolio to take advantage of areas that is expected to do relatively better than other areas. Sector rotation is a theory of stock market trading patterns. In this context, a sector is understood to mean a group of stocks representing companies in similar lines of business.

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