Examlex

Solved

An Investment Consultant Is Recommending a Certain Class of Mutual

question 73

True/False

An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of gain.It is an ethical practice to explain to the clienteles what the meaning of probability is.


Definitions:

Short-Term Projects

Initiatives or tasks that are expected to be completed or yield results within a relatively brief period, typically less than one year.

Risk Level

An indicator of the level of risk and possible monetary loss associated with making an investment choice.

Payback

The period of time required for the return on an investment to "repay" the sum of the original investment.

Time Value of Money

The theory that current money holds more value than equal amounts in the future because of the earnings it could potentially produce.

Related Questions