An Investor Will Generally Find That Hiring an Investment Firm

question 52

Multiple Choice

An investor will generally find that hiring an investment firm to actively manage his or her portfolio will

• A) result in a higher return than would be received from an index mutual fund.
• B) be less expensive than simply placing money in an index mutual fund.
• C) result in a higher return, but will be more expensive than placing money in an index mutual fund.
• D) result in about the same return, but will be more expensive than placing money in an index mutual fund.

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Definitions:

Moderate Expertise

A level of skill or knowledge that is above average but not at the level of an expert in a particular field.

Central Route

A method of persuasion that involves deeply processing the content of the message, leading to a lasting attitude change.

Peripheral Route

A method of persuasion that relies on superficial cues or factors rather than logical argument or the content's intrinsic merits.

Persuasion

The process of affecting an individual's thoughts, feelings, or actions by means of discussion, logic, or enticement.