"A Person Will Imitate Another When He Expects to Be

question 5

Multiple Choice

"A person will imitate another when he expects to be rewarded for doing so." This statement is most consistent with

• A)the theory that imitation is an innate tendency
• B)the theory that imitation is simple operant conditioning
• C)the concept of stimulus enhancement
• D)Bandura's theory of imitation

Distinguish between mutual funds and hedge funds.

Understand the differences between various types of investment funds and their strategies.

Calculate the return on investments in mutual funds considering front-end loads, expense ratios, and performance.

Identify the characteristics and operational strategies of hedge funds in contrast to mutual funds and ETFs.

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Definitions:

Income Share

The proportion of total income earned by a specific group, often used in discussions of income inequality.

Normal Profit

The minimum level of profit necessary for a company to remain competitive in the market, essentially covering opportunity costs.

Economic Profit

Profits calculated after considering both explicit costs, like materials and labor, and implicit costs, like opportunity costs, differentiating it from accounting profits.

Pure Rate of Interest

The theoretical return on an investment with no risk of financial loss, representing the time value of money.