To Avoid Delivering an Unpleasant Message to the CEO, an Employee

question 67

True/False

To avoid delivering an unpleasant message to the CEO, an employee frames the information in a more positive light than reality. This is an example of overconfidence bias.

Understand the basic types of mutual funds and their investment strategies.

Learn how to assess mutual fund safety and risk.

Recognize the importance of management, fees, and expense ratios in mutual fund selection.

Understand the benefits and principles of diversification in mutual funds.

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Definitions:

Intermediate

A middle stage or level between basic and advanced.

Short

In finance, taking a position in which you sell a security you do not own, with the intention of buying it back at a lower price.

Equity Securities

Financial assets that represent shares of ownership in a corporation, such as stocks, granting holders a claim on the corporation’s profits and assets.

Capital Markets

Markets where savings and investments are channeled between suppliers who have capital and those who are in need of capital.