Future Fund Performance Is the Real Key to Investment Success

question 26

Multiple Choice

Future fund performance is the real key to investment success with mutual funds.One important element to examine when attempting to predict a fund's future performance is the

• A)performance of other funds.
• B)nature of the fund being considered.
• C)future course of the market.
• D)fund's past performance.
• E)all of these.

---

Definitions:

Earnings Per Share

A company's net income divided by the number of outstanding shares of its common stock.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, from its total revenue.

Preferred Dividends

Preferred dividends are payments made to preferred shareholders before any dividends are paid to common shareholders, usually fixed and based on a percentage of the par value of the shares.

Accounts Receivable Turnover

A financial ratio indicating how many times a company collects its average accounts receivable balance in a period.