Which of the Following Is True

question 635

Multiple Choice

Which of the following is true?

• A) Managed equity funds that have yielded attractive returns during the last 5 or 10 years can generally be counted on to yield similar returns in the future.
• B) Managed funds generally outperform indexed equity mutual funds.
• C) An investment strategy that yielded a high rate of return in the past will often be disastrous in the future.
• D) Indexed equity mutual funds are usually tied directly to either the Consumer Price Index or the GDP deflator.

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Definitions:

Pessimists

Individuals who tend to see the worst aspect of things or believe that the worst will happen; a lack of hope or confidence in the future.

Catharsis

Catharsis is the process of releasing and thereby providing relief from strong or repressed emotions, often through expressing these emotions in a controlled environment.

Aggressive Urges

Feelings or desires that drive an individual to act or think in a forceful, hostile, or harmful way.

Angry Expressions

Facial or bodily gestures that convey anger, a basic human emotion that involves a strong feeling of annoyance, displeasure, or hostility.