An Investment Consultant Is Recommending a Certain Class of Mutual

question 73

True/False

An investment consultant is recommending a certain class of mutual funds to the clienteles based on its exceptionally high probability of gain.It is an ethical practice to explain to the clienteles what the meaning of probability is.

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Definitions:

Fixed Costs

Fixed expenses unaffected by variations in production volume or sales, like lease payments, employee salaries, and insurance fees.

Variable Costs

Expenses that vary directly with the volume of production or services a company offers, including labor and materials.

Total Revenue

A company's aggregate income from product sales and service charges within a set timeframe.

Variable Costs

Expenditures that shift in accordance with the scale of output or level of production activities.