Advertisement: Last year, Factorial Mutual Fund continued its strong record of investment performance. Investors who included Factorial Fund in their portfolios realized an average capital gain of 15% across all of their investment assets, nearly double the market return. Therefore, investors interested in high returns should consider adding Factorial Mutual Fund to their portfolios.
The claim in the advertisement above is based on which of the following assumptions?
A. Factorial Fund is one of the oldest and largest mutual funds in the investment industry.
B. A substantial part of the 15% portfolio appreciation was attributable to the returns of Factorial Fund and this level of fund's performance is likely to persist in the future.
C. Last year, Factorial Fund outperformed all other funds with similar style and investment objectives.
D. The Fund is suitable to all investors.
E. The fees charged by Factorial Fund are among the lowest in the investment industry.
OA B
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Advertisement: Last year, Factorial Mutual Fund continued it
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Option A- INCORRECT.
Factorial Fund maybe one of the oldest and largest mutual funds in the investment industry, but the years of existence is not the only reason for the strong investment performance.
Option B - CORRECT.
Base on assumption, it is certain that a substantial part of the 15% portfolio appreciation has been attributed to the returns of Factorial Fund and this level of fund's has increased the performance of investors and it is likely to continue in the future.
Option C - INCORRECT.
The method applied by Factorial Fund to out-stand all other funds with similar style and investment objectives, is still in existence and has helped in boosting fund generation adequately.
Option D - INCORRECT.
The Fund is suitable to all investors, this is more reason why a good record of an average capital gain of 15% across all of their investment assets has been generated.
Option E - INCORRECT.
It is obvious that the fees charged by Factorial Fund is the lowest among all other investment industry.
Factorial Fund maybe one of the oldest and largest mutual funds in the investment industry, but the years of existence is not the only reason for the strong investment performance.
Option B - CORRECT.
Base on assumption, it is certain that a substantial part of the 15% portfolio appreciation has been attributed to the returns of Factorial Fund and this level of fund's has increased the performance of investors and it is likely to continue in the future.
Option C - INCORRECT.
The method applied by Factorial Fund to out-stand all other funds with similar style and investment objectives, is still in existence and has helped in boosting fund generation adequately.
Option D - INCORRECT.
The Fund is suitable to all investors, this is more reason why a good record of an average capital gain of 15% across all of their investment assets has been generated.
Option E - INCORRECT.
It is obvious that the fees charged by Factorial Fund is the lowest among all other investment industry.
