An Investor Will Generally Find That Hiring an Investment Firm

question 84

Multiple Choice

An investor will generally find that hiring an investment firm to actively manage his or her portfolio will

• A)result in a higher return than would be received from an index mutual fund.
• B)be less expensive than simply placing money in an index mutual fund.
• C)result in a higher return, but will be more expensive than placing money in an index mutual fund.
• D)result in about the same return, but be more expensive than placing money in an index mutual fund.

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Definitions:

Big Business

Large-scale or major corporations and enterprises that have significant influence on the economy, often with considerable power and resources.

Debt

A sum of money that is owed or due.

Thrift

The practice of saving money and spending it wisely, often associated with frugal living.

Reconstruction Finance Corporation

Federal program established in 1932 under President Herbert Hoover to loan money to banks and other institutions to help them avert bankruptcy.