In a Particular Year, Salmon Arm Mutual Fund Earned a Return

question 26

Multiple Choice

In a particular year, Salmon Arm Mutual Fund earned a return of 16% by making the following investments in asset classes: The return on a bogey portfolio was 12% calculated as follows:
-The total excess return on the managed portfolio was __________.

• A) 2%
• B) 3%
• C) 4%
• D) 5%

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Definitions:

Denial of Reality

A psychological defense mechanism in which individuals refuse to accept the truth of a situation or fact, often to protect themselves from discomfort.

Fantasy

A genre of fiction that involves magical or supernatural elements not existing in the real world.

Constructive Coping

Strategies that are adaptive and help in managing or overcoming stress and its effects in a positive manner.

Burnout

A state of physical, emotional, and mental exhaustion caused by long-term involvement in situations that are emotionally demanding.