Letter Grades Are Most Frequently Assigned to Mutual Funds Based

question 39

Multiple Choice

Letter grades are most frequently assigned to mutual funds based on the fund's:

• A)projected future returns.
• B)historical rates of return.
• C)management style.
• D)portfolio size.
• E)investment objective.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.

Critical

Expressing or involving an analysis of the merits and faults of a concept, narrative, or item, often involving detailed evaluation.

Mental Efficiency

The effectiveness with which an individual's brain processes information and performs cognitive tasks.

Moral Judgment

The process of determining the ethicality or morality of a certain action or decision based on personal, cultural, or societal standards.