When Choosing a Mutual Fund Investors Should Look for

question 37

Multiple Choice

When choosing a mutual fund investors should look for

• A) a fund whose previous year's performance beat the benchmark index.
• B) low fees and high tax efficiency.
• C) a fund manager who has been in place for five or more years.
• D) a blend of equities and fixed income securities.

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Definitions:

Driving Forces

Elements that motivate or push an organization or individual towards a particular direction or goal.

Restraining Forces

are factors or influences that resist or oppose change, hindering movement towards a desired state.

Stability

The quality of being resistant to change, maintaining a consistent state over time, or returning to an equilibrium after a disturbance.

Predictable Role Patterns

Established behaviors and responsibilities expected from individuals in specific positions within an organization.