It Is Claimed That a Secondary Advantage of Mutual Funds

question 63

Multiple Choice

It is claimed that a secondary advantage of mutual funds is that

• A)an investor can avoid investment charges and fees.
• B)they give ordinary people access to loanable funds for investing.
• C)they usually outperform stock market indexes.
• D)they give ordinary people access to the skills of professional money managers.

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Definitions:

Extinction

In psychology, the gradual weakening of a conditioned response when the reinforcement is no longer provided.

Stimulus Generalization

A psychological phenomenon in which a response that has been conditioned for one stimulus is evoked by another, similar stimulus.

Response Attenuation

The reduced reaction to a stimulus over time, typically as a result of repeated exposure.

Stimulus Generalization

The process by which a conditioned response is triggered by stimuli that are similar but not identical to the original conditioned stimulus.