A Sales Representative from an Investment Company Is Trying to Convince

question 110

Multiple Choice

A sales representative from an investment company is trying to convince a young couple to invest in one of the company's mutual funds.What will most increase his likelihood of success,based on the framing effect

• A) He leaves a detailed prospectus containing a lot of statistical analyses. 
• B) He stresses that the fund has lost money in only 3 of the past 15 years. 
• C) He stresses that the fund has had solid returns in 12 of the past 15 years. 
• D) He mentions the names of other people who have invested in the fund.

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Definitions:

Savings Deposits

Bank accounts that pay interest on the money deposited, meant for saving rather than daily transactions.

Capital Formation

The process of building up a country's stock of real capital, such as buildings, machinery, and equipment, which is used for production.

Economy

The system of production, distribution, and consumption of goods and services within a society.

Invest Abroad

Investing abroad involves putting capital into business ventures or markets outside one's own country to diversify investments and potentially gain higher returns.