5-79 Which of the Following Is the Practice That Involves

question 76

Multiple Choice

5-79 Which of the following is the practice that involves short-term trading of mutual funds seeking to take advantage of short- term discrepancies between the price of a mutual fund's shares and out-of-date values on the securities in the fund's portfolio?

• A)Market timing.
• B)Insider trading.
• C)Late trading.
• D)Directed brokerage.
• E)Spinning.

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Definitions:

Bell-Shaped

A description of a graph or distribution that is symmetrical and rounded at the top, resembling the shape of a bell, typically indicative of a normal distribution.

Standard Deviation

An examination of the level of disparity or distribution range among values.

Skewed

A description of a distribution that is not symmetrical around its mean, indicating that the data points tend to extend more to one side than the other.

Normally Distributed

Refers to a probability distribution that is symmetrically shaped around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.