Many Funds Advertise Their Returns as the Amount to Which

question 32

Multiple Choice

Many funds advertise their returns as the amount to which $10,000 invested in the fund would have grown to over 5 or 10 years. These results assume that

• A) all dividends, interest and capital gains on a pre-tax basis are reinvested in the fund.
• B) all dividends and capital gains less a 15% deduction for taxes are reinvested in the fund.
• C) all dividends and interest are reinvested in the fund.
• D) no dividends or capital gains are reinvested in the fund.

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Definitions:

Motivation

A reason or incentive for an individual to perform in a particular way.

Trait Characteristics

The enduring components of personality which can be represented as attitudes, behaviors, or dispositions.

General Presentation

The overall manner in which a person or subject is introduced or displayed to others.

Temporary Expression

A short-term display or manifestation of feelings, thoughts, or behaviors.