Which of the Following Terms Is Not Applied to Innate

question 18

Multiple Choice

Which of the following terms is not applied to innate behavior?

• A) inborn
• B) learned
• C) genetically programmed
• D) instinctive
• E) inherited

Distinguish between mutual funds, hedge funds, and equity funds in terms of performance and risk characteristics.

Understand the concept of comparison universe and its relevance to mutual fund performance evaluation.

Grasp the significance of serial correlation in mutual and hedge fund performance.

Evaluate the performance of mutual funds using Morningstar’s RAR method and understand its criteria.

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Definitions:

Step-fixed Costs

Expenses that remain constant for a set level of production or output, but can change when a certain threshold is crossed.

Inflationary Price Increase

The rise in prices of goods and services over time, typically due to an increase in the money supply or demand outpacing supply.

Reconciled

The process of making sure that two sets of records (usually the balances of two accounts) are in agreement.

Step-fixed Costs

Costs that remain fixed over a range of activity, but jump to a higher level of expense at certain points when activity levels require it.