The Increased Cash Flows into Mutual Funds That Have Recently

question 57

Multiple Choice

The increased cash flows into mutual funds that have recently had superior returns is most associated with which one of the following characteristics?

• A)overconfidence
• B)excess trading
• C)clustering illusion
• D)diversification
• E)risk aversion

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Definitions:

Topic Sentence

A topic sentence is the first sentence in a paragraph that introduces the main idea or point that will be discussed throughout the paragraph.

Thunderstorm

A storm characterized by the presence of lightning and thunder, often accompanied by heavy rain or hail.

Debris

Fragments or remnants of something destroyed or broken down, often referring to scattered pieces of waste or ruins.

Pantry Stocked

A state of having a storage area in a house, particularly for food and provisions, fully supplied with essentials and other goods.