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Rudy Has a Mutual Fund Investment with Low Fees

question 32

Essay

Rudy has a mutual fund investment with low fees. He is not concerned about the fees over the long run. How is his thinking flawed?


Definitions:

Sale Probability

The likelihood or chance that a product or service will be purchased within a given timeframe.

Shirk

The act of avoiding or neglecting one's duties or responsibilities.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often seen in insurance and finance.

Let Themselves Go

A phrase describing individuals who have stopped maintaining their appearance or health.

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