You Are Considering Investing in a No-Load Mutual Fund That

question 18

Multiple Choice

You are considering investing in a no-load mutual fund that focuses on growth stocks or in an index fund.The growth stocks had an annual return of 15 percent and expenses of 2 percent.The index fund had an annual return of 12 percent and expenses of 1 percent.Assuming equal risk,you should buy

• A)the index fund.
• B)the growth fund.
• C)some of both.
• D)neither; the expenses are too high.

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Definitions:

Audience Analysis

The process of examining and understanding the characteristics, needs, and preferences of the intended audience of a communication.

Primary Audience

The main group of people that a message, piece of content, or campaign is specifically intended to reach.

Audience Composition

The makeup or characteristics of the people who will be receiving and interpreting a message.

Skeptical Audience

A group of individuals who have doubts or questions about the credibility or truth of the information presented to them.