Which of the Following Is a Reason That Makes the Use

question 60

Multiple Choice

Which of the following is a reason that makes the use of fund performance history problematic?

• A) Funds with high expense ratios tend to be poor performers.
• B) The best performing funds may simply be the riskiest funds.
• C) A fund tends to keep its performance ranking over time.
• D) Mutual fund returns are difficult to measure.
• E) All of the above are true.

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Definitions:

Anonymous

Describes a person, action, or situation where the identity is unknown or not disclosed, offering privacy or secrecy.

Hostile Expectation Bias

The tendency to assume that people will react to potential conflicts with aggression.

Domestic Battle

A conflict or struggle occurring within a household, often between family members or domestic partners.

Quick Conclusions

Forming opinions or decisions rapidly without taking the time to fully evaluate the evidence or understand the situation completely.