The Best Way to Predict a Mutual Fund's Performance Is

question 24

Multiple Choice

The best way to predict a mutual fund's performance is to

• A) ask your stockbroker.
• B) look it up on the Internet.
• C) look at past performance.
• D) study the investment strategy as it relates to the current economic conditions.

---

Definitions:

Central Route

A method of persuasion that involves careful and thoughtful consideration of the arguments presented, leading to lasting attitude change.

Persuasion

The act of convincing someone to do or believe something through reasoning or the use of another method.

Financial Investment

An allocation of resources, typically money, into assets or endeavors expected to generate financial returns or growth over time.

Elaboration Likelihood Model

Theory identifying two ways to persuade: a central route and a peripheral route.