You Are Starting Your First Job After College and Are

question 216

Essay

You are starting your first job after college and are looking for a mutual fund in which to invest some of your retirement savings. You research a number of mutual funds and find that fund A has generated above-normal returns for the past 2 years and has a highly respected fund manager. You also find that fund B has earned slightly below-average returns for the past 2 years, is being advertised as a good buy, and is expected to break through and earn high returns in the upcoming year. Based on the efficient markets hypothesis, which fund should you choose? Explain.

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Definitions:

Place Of Tender

The designated location where a party to a contract is required to perform delivery of goods or payment of money.

Seller's Place

The designated location where the seller is required to deliver goods or perform services according to a contract.

Place Of Delivery

The specific location agreed upon where goods will be delivered or services will be rendered.

Seller's Business

The commercial activities, operations, or engagements of a seller in the marketplace, including the sale of goods or services.