An Investment Consultant Is Recommending a Certain Class of Mutual

question 124

True/False

An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of exceptionally high gain.It is an unethical practice to tell the clienteles the probability of a loss in her recommendations.

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Definitions:

Item Characteristic Curve

A graphical representation that shows the probability of a respondent answering a test item correctly at different levels of ability.

Item Response Theory

A theory and related statistical models that estimate the probability of an individual responding to a specific item on a test, based on the item characteristics and the individual's latent trait level.

Rehabilitation Act

A U.S. federal law that prohibits discrimination on the basis of disability in programs conducted by federal agencies.

Appropriateness

The quality of being suitable or fitting for a particular purpose, person, occasion, etc.