Which of the Following Is Not a True Statement

question 112

Multiple Choice

Which of the following is not a true statement?

• A)Professional management is an especially important factor for investors purchasing a mutual fund.
• B)One of the many reasons why investors purchase mutual funds is diversification.
• C)With mutual funds, an occasional loss in one security is often offset by gains in other securities.
• D)Mutual funds are designed to appeal to conservative investors with long-term investment goals.
• E)The individual investor is responsible for choosing the right mutual fund.

---

Definitions:

P-value

The probability of observing results as extreme as those observed in a study, under the assumption that the null hypothesis is true.

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or effect exists between specified populations or parameters.

Statistical Significance

An indication that the results observed in a study or experiment are unlikely to occur by chance alone, according to a predetermined threshold.

Random Sample

A selection of people drawn from a broader group, where every person has the same likelihood of being chosen.