Mutual Funds Show ____________ Evidence of Serial Correlation, and Hedge

question 1

Multiple Choice

Mutual funds show ____________ evidence of serial correlation, and hedge funds show ____________ evidence of serial correlation.

• A)almost no; almost no
• B)almost no; substantial
• C)substantial; substantial
• D)substantial; almost no

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Definitions:

Intuitive

Pertaining to or based upon intuition, often involving a grasp of truths, relationships, facts, or the like, spontaneously or without logical reasoning.

Framing Error

A cognitive bias where the way information is presented influences decision making or judgment.

Escalation

The process of increasing or intensifying a situation or conflict, often leading to a more serious state.

Overconfidence

A cognitive bias where someone's subjective confidence in their judgments is greater than their objective accuracy.