Failing to Discard Successful Plans from the Past Is Likely

question 147

Multiple Choice

Failing to discard successful plans from the past is likely to lead to ________.

• A)more success because conditions are unlikely to change in the future
• B)failure because conditions are likely to change in the future
• C)success because of the high quality of the plans
• D)failure because of the low quality of the plans

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Definitions:

Premium/Discount

Refers to the amount by which the market price of a bond exceeds (premium) or is less than (discount) its face value.

Front-end Load

A sales charge or commission paid by an investor at the initial purchase of mutual fund shares, usually used to compensate brokers or sales agents.

NAV

Net Asset Value, the total value of a fund's assets minus its liabilities, divided by the number of shares outstanding.

Portfolio Turnover

A measure of how frequently assets within a portfolio are bought and sold by the manager over a specific period.