Even Though Indexing Is Growing in Popularity, Only About ________

question 33

Multiple Choice

Even though indexing is growing in popularity, only about ________ of equity in the mutual fund industry is held in indexed funds. This may be a sign that investors and managers ________.

• A) 5%; are excessively conservative
• B) 25%; overestimate their ability
• C) 15%; suffer from framing biases
• D) 25%; engage in mental accounting

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Definitions:

Cultural Differences

Variations in values, beliefs, practices, and customs among different societies and communities.

External Cause

Any factor or event originating outside an individual that significantly affects behaviors, outcomes, or circumstances.

Internal Cause

Factors within a person, such as traits, beliefs, or desires, that lead to their behavior or actions.

Literature Class

An academic course focusing on the study, analysis, and interpretation of written works, such as poems, novels, and plays.