Investor Expectations About Expected Returns from Various Asset Classes Should

question 9

Multiple Choice

Investor expectations about expected returns from various asset classes should start with:

• A)long-term rates of return of those asset classes.
• B)last month's rate of return of those asset classes.
• C)last year's rate of return of those asset classes.
• D)the correlation of returns from asset classes over the past two years.

---

Definitions:

Compliance

The act of conforming to a request, demand, or regulation, often motivated by a desire to gain approval or to avoid conflict.

Elaboration-Likelihood Model

A theory distinguishing two pathways of persuasion: a central route, which involves careful thinking and deliberation, and a peripheral route, which relies on superficial cues.

Peripheral Route

A path of persuasion that involves a respondent's passive engagement, where attitudes or decisions are influenced by superficial cues rather than deep processing of information.

Central Route

A method of persuasion that involves deeply processing the content of a message, considering its arguments and evidence.