The Text Offers a Number of Suggestions for Investing in Mutual

question 80

Multiple Choice

The text offers a number of suggestions for investing in mutual funds.Which of the following is not such a suggestion?

• A) Choose only those mutual funds which are consistent with your objectives and constraints.
• B) Invest in no-load funds whenever possible.
• C) Avoid investing in index funds.
• D) Use a dollar cost average strategy.
• E) None of the above (that is, all are valid suggestions for investing in mutual funds)

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Definitions:

Drive-reduction

A theory in psychology that explains motivation as being the result of drives, such as hunger or thirst, that an organism seeks to reduce to maintain homeostasis.

Arousal Theory

A theory of motivation that posits individuals seek to maintain an optimal level of arousal, not too high or too low.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, or preferences through study, experience, or teaching.

Unlearned Behavior

Innate actions or responses that are not acquired by learning or experience.