The First Step Any Investor Should Take Before Beginning to Invest

question 3

Multiple Choice

The first step any investor should take before beginning to invest is to ________.

• A) establish investment objectives
• B) develop a list of investment managers with superior records to interview
• C) establish asset allocation guidelines
• D) decide between active management and passive management

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Definitions:

Subjectivity

Based on or influenced by personal feelings, tastes, or opinions rather than external facts or evidence.

Stereotypes

Overgeneralized beliefs about a particular category of people that can lead to prejudicial attitudes and discrimination.

Physical Appearance

The outward look of individuals, including characteristics such as body shape, facial features, and other physical traits, which can affect social perception and interaction.

Impressions

The initial perceptions or thoughts formed about someone or something based on observed attributes or actions.