1. The GICS classification system classifies companies on the basis of a company’s primary business activity as measured primarily by:

A. Assets.

B. Income.

C. Revenue.

2. Which of the following is least likely to be accurately described as a cyclical company?

A(n)

A. Automobile manufacturer.

B. Producer of breakfast cereals.

C. Apparel company producing the newest trendy clothes for teenage girls.

3. Which of the following is the most accurate statement? A statistical approach to grouping companies into industries:

A. Is based on historical correlations of the securities’ returns.

B. Frequently produces industry groups whose composition is similar worldwide.

C. Emphasizes the descriptive statistics of industries consisting of companies producing similar products and/or services.