The Practice That Involves Short-Term Trading of Mutual Funds Seeking

question 106

Multiple Choice

The practice that involves short-term trading of mutual funds seeking to take advantage of short-term discrepancies between the price of a mutual fund's shares and out-of-date values on the securities in the fund's portfolio is called

• A)Market timing.
• B)Insider trading.
• C)Late trading.
• D)Directed brokerage.
• E)Spinning.

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Definitions:

Sample

A subset of individuals or items selected from a larger population, used in research to draw conclusions about the entire population.

Independent Variable

The variable that is manipulated or changed in an experiment to investigate its effect on the dependent variable.

Experimental Group

In a scientific study, the group of subjects who receive the treatment or condition being tested, as opposed to the control group.

Experimenter Bias

A process where the scientists performing the research influence the results, in order to portray a certain outcome.