A ________ Is an Investment Fraud in Which a Manager

question 35

Multiple Choice

A ________ is an investment fraud in which a manager collects funds from clients, claims to invest those funds on their behalf, and reports extremely favorable investment returns, but in fact uses the funds for his or her own use.

• A) Ponzi scheme
• B) bonsai scheme
• C) statistical arbitrage scheme
• D) pairs trading scheme
• E) None of the options are correct.

Recognize the role of unconscious factors in personality assessment and the development of projective tests.

Understand the implications of high self-monitoring and self-efficacy beliefs on personality.

Explain the psychological constructs of locus of control and its implications on behaviour and attitude.

Identify major personality traits proposed by theorists like Eysenck and their biological underpinnings.

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Definitions:

Operating Leverage

Operating leverage refers to the degree to which a company or project can increase operating income by increasing revenue.

Total Leverage

The combination of operating leverage (affecting operating income) and financial leverage (affecting net income), indicating total risk.

Financial Leverage

The use of borrowed funds to finance the acquisition of assets, with the expectation that the profits made will be greater than the interest payable.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.