An Investor Will Generally Find That Hiring an Investment Firm

question 84

Multiple Choice

An investor will generally find that hiring an investment firm to actively manage his or her portfolio will

• A)result in a higher return than would be received from an index mutual fund.
• B)be less expensive than simply placing money in an index mutual fund.
• C)result in a higher return, but will be more expensive than placing money in an index mutual fund.
• D)result in about the same return, but be more expensive than placing money in an index mutual fund.

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Definitions:

Sale or Return

A sales agreement that allows the buyer to return unsold goods to the seller rather than pay for them, typically used in consignment deals.

Buyer's Use

The intended or actual application of a purchased product or service by the consumer.

FOB

An abbreviation of free on board.

FAS

An abbreviation for the expression free alongside ship.