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:

Learned Helplessness

The cognitive, motivational, and emotional deficits that follow a perceived lack of control over important aversive events.

Negative Schema

Persistent and pervasive patterns of thought that shape the way an individual interprets and understands the world, often leading to pessimistic views or expectations.

Depressing Memories

Recollections from the past that evoke feelings of sadness, despair, or hopelessness.