An Investment Consultant Is Recommending a Certain Class of Mutual

question 124

True/False

An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of exceptionally high gain.It is an unethical practice to tell the clienteles the probability of a loss in her recommendations.

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Definitions:

Random Sample

A subset of individuals chosen from a larger set where each individual has an equal chance of being selected.

Sampling Process

The method or procedure used to select a subset of individuals from a population to represent the whole.

Nonsampling Error

Refers to the errors that arise during data collection and processing, which are not related to the act of sampling itself, such as measurement errors, processing errors, and coverage errors.

Wording

The choice of words or phrases in a piece of writing or speech.