It Is Claimed That a Secondary Advantage of Mutual Funds

question 63

Multiple Choice

It is claimed that a secondary advantage of mutual funds is that

• A)an investor can avoid investment charges and fees.
• B)they give ordinary people access to loanable funds for investing.
• C)they usually outperform stock market indexes.
• D)they give ordinary people access to the skills of professional money managers.

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Definitions:

Classical Conditioning

The act of learning that happens when two stimuli are paired together repeatedly, and a reaction initially caused by the second stimulus starts to be triggered by the first stimulus exclusively.

Discriminative Stimulus

A cue or event that indicates that a particular response will lead to a certain consequence in operant conditioning.

Generalized Stimulus

A stimulus that elicits a response not only to the original stimulus but also to similar stimuli.

Reinforcement

In behavioural psychology, a process by which a stimulus increases the probability of a preceding behaviour being repeated.