Which of the Following Statements Is False

question 64

Multiple Choice

Which of the following statements is false?

• A)Most investors in mutual funds will tell you that the most important consideration in evaluating a mutual fund is long-term performance.
• B)It is possible to compare a fund's long-term performance with the performance of the TSE 300 stock index.
• C)The length of time a fund's manager has been managing a fund should not be considered when evaluating a fund because the investment company has the right to replace a fund manager.
• D)Long-term performance should not be the only factor that you consider in evaluating a mutual fund.
• E)Information on a fund's long-term performance is available in its prospectus and in other sources of financial information.

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Definitions:

Size Constancy

The perceptual phenomenon where the perceived size of an object remains constant, despite changes in its distance from the observer.

Perceived Distance

The subjective experience or estimation of how far an object is from the observer.

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance by converging parallel lines at a single point on the horizon.

Convey Distance

The process of communicating or expressing the physical space or separation between objects or locations.