To Determine the Actual Objective of a Fund, You Should

question 98

Multiple Choice

To determine the actual objective of a fund, you should primarily refer to the:

• A)fund's objective statement.
• B)fund's prospectus.
• C)portfolio holdings.
• D)sales literature.
• E)portfolio manager's comments in the annual report.

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Definitions:

Positive Punishment

An operant conditioning principle where the introduction of an unfavorable outcome or stimulus following a behavior decreases the likelihood of the behavior occurring again.

Behaviors

Actions or reactions of an individual in relation to the environment or situations.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses required for reinforcement varies randomly around a mean value, promoting high and steady rates of response.

Fixed-Ratio Schedule

A reinforcement strategy in behavioral psychology where a response is rewarded only after a specified number of responses.