Studies Show That Segregated Funds

question 55

Multiple Choice

Studies show that segregated funds

• A)consistently outperform stock markets because of their guarantee.
• B)consistently outperform mutual funds because of the probate fees.
• C)consistently underperform mutual funds because of their higher expenses.
• D)consistently outperform mutual funds because of the important insurance option.

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Definitions:

Rational Choice Theory

A framework for understanding and often formally modeling social and economic behavior based on the assumption that individuals act on rational self-interest.

Network Theory

A theory in sociology and other fields that examines how networks of social interactions influence behavior and outcomes.

Rational Choice Theory

A theory in social science that posits individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.

Corporate Actors

Entities such as companies or businesses that are capable of making decisions and acting in the economic or social sphere, often with considerable influence.