Studies of Mutual-Fund Performance

question 13

Multiple Choice

Studies of mutual-fund performance

• A) indicate that one should not randomly select a mutual fund.
• B) indicate that historical performance is not necessarily indicative of future performance.
• C) indicate that the professional management of the fund insures above market returns.
• D) indicate that one should not randomly select a mutual fund and indicate that historical performance is not necessarily indicative of future performance.
• E) indicate that historical performance is not necessarily indicative of future performance and indicate that the professional management of the fund insures above market returns.

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Definitions:

Debtor's Property

Assets owned by an individual or entity (debtor) that owe money to creditors, which may be subject to claims or liens.

Debtor Defaults

Occurs when a debtor fails to meet the legal obligation of debt repayment, potentially leading to legal action or loss of collateral.

Repossesses Collateral

The act of taking back possession of property used as collateral in a loan agreement, typically after a default by the borrower.

Surplus

The amount by which revenues, resources, or supplies exceed what is needed or used; in finance, it refers to profit or the amount by which income exceeds expenditures.