The ______ Is Essential to Make Sense of a Problem

question 44

Short Answer

The ______ is essential to make sense of a problem, to see how it compares to other concerns in our personal lives or in society, and to estimate what effects a proposal or action might have.

---

Definitions:

Actively-managed Mutual Funds

Mutual funds where managers actively make investment decisions in an attempt to outperform a specific benchmark.

Underperformance

A return on an investment that is lower than the benchmark or expectations.

Direct-sold Funds

Direct-sold funds are mutual funds or similar investment vehicles that are offered directly to investors by the managing company, without the need for a financial advisor or broker.

Risk Premium

The extra return expected by an investor for holding a higher-risk investment over a risk-free asset.