Which One of the Following Statements Is False

question 72

Multiple Choice

Which one of the following statements is false?

• A)As an investor,you should be concerned with how long a fund manager has been managing a mutual fund.
• B)The fund manager chooses when to buy and sell securities in the fund.
• C)If a manager has been managing a fund for 5 or 10 years,it is time to change managers and get someone with new ideas.
• D)The fund manager is responsible for choosing the securities that are contained in the fund.
• E)Managed funds have higher fees than index funds.

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Definitions:

Correlational Analysis

A statistical method used to determine the degree to which two variables are related.

Analysis Of Variance

A test for the difference between two or more means. A simple analysis of variance (or ANOVA) has only one independent variable, whereas a factorial analysis of variance tests the means of more than one independent variable. One-way analysis of variance looks for differences between the means of more than two groups.

Slope

The measure of the steepness or incline of a line, defined as the ratio of the vertical change to the horizontal change between two points.

Regression Equation

A mathematical formula used to describe the relationship between a dependent variable and one or more independent variables.