What Is a Common Rationale for a Managed Fund

question 45

Multiple Choice

What is a common rationale for a managed fund?

• A)the need for more diversity in investment products
• B)the opportunity for retail investors to achieve superior diversification
• C)the potential for retail investors to achieve superior returns
• D)the opportunity for retail investors to achieve superior diversification and the potential for retail investors to achieve superior returns

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Definitions:

Y-Intercept

The point where a line crosses the y-axis on a graph.

Least Squares Line

A line of best fit determined by minimizing the sum of the squares of the vertical distances of the points from the line.

Shape of Distribution

Describes the geometric outline formed by plotting the frequency of data points over a range of values.

Quartiles

Values that divide a dataset into four equal parts, indicating the distribution of values in the dataset.