You Are Considering the Purchase of a Mutual Fund

question 53

Multiple Choice

You are considering the purchase of a mutual fund. You have found three funds that meet your basic criteria. Each fund has a different alpha. Which alpha indicates the preferred investment?

• A)the most negative alpha
• B)the least negative alpha
• C)the zero alpha
• D)the lowest positive alpha
• E)the highest positive alpha

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Definitions:

Slope-Intercept Form

A linear equation's representation in the form y = mx + b, where m is the slope and b is the y-intercept.

Undefined Slope

Refers to the slope of a vertical line in coordinate geometry, which cannot be calculated as it would involve division by zero.

Line

In geometry, a straight one-dimensional figure having no thickness and extending infinitely in both directions.

Points

Specific locations in space that are defined by their coordinates.