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In portfolio management, Sector Rotation is used by some managers to capture the best possible returns. Define sector rotation in detail and specify which business
In portfolio management, Sector Rotation is used by some managers to capture the best possible returns. Define sector rotation in detail and specify which business sectors you would purchase at what stages of the business cycle. Please give specific industry examples and company stock choices for entry into your stock portfolio i.e. Foods/Kraft-Heinz Pharmaceuticals/Pfizer, Autos/Ford.....etc. Draw a graph of a typical business cycle defining its five segments as illustrated in your textbook. Indicate exactly at what point of the business cycle you would buy the sector stocks during the growth or recession stages. Explain in detail when and why you would Sell a stock or Buy it. Explain why you made these decisions. What betas can you expect your stock selections to have during the various stages of the cycle? Expansion
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