Dollar Cost Averaging Is Likely to Work Best with a Mutual

question 4

Multiple Choice

Dollar cost averaging is likely to work best with a mutual fund

• A) whose NAV fluctuates widely, but trends upward.
• B) whose NAV remains relatively constant, like a money market fund.
• C) whose NAV fluctuates widely, but trends downward.
• D) whose NAV fluctuates within a narrow range and is relatively trendless.

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Definitions:

Dependent-Samples T Test

A statistical test used to compare the means of two related groups to determine if there is a significant difference between them.

Null Hypothesis

The presumption of no association or effect between variables until evidence suggests otherwise.

Dependent-Samples T Test

A statistical test applied to compare the means of two related groups of samples, typically used when the samples are paired or matched in some way.

Capital Intensity Ratio

A measure of how much capital is used in production, often expressed as the ratio of total assets to sales revenue.