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NEW QUESTION: 1
Section A (1 Mark)
An equity analyst working for a growth oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has previously recommended and the fund already owns. Her behavior is most likely consistent with which of the following biases?
A. Prospect theory
B. None of These
C. Confirmation bias
D. Escalation bias
Answer: C
NEW QUESTION: 2
The family carries out its health care functions in which of the following ways?
A. Family provides very little preventive health care to its members at home.
B. Family decides when and where to hospitalize its members.
C. Family provides sick care to its members.
D. Family pays for most health services.
Answer: C
Explanation:
The family provides sick care to its members. The other options are incorrect.Prevention and Early Detection of Disease
NEW QUESTION: 3
Nat Smart was employed as an investment adviser representative and sold many of his clients on a
municipal bond fund of which he was fond, telling his clients that the returns earned on it were completely
free from federal taxation. Unfortunately, he had some unhappy clients when, at the end of the year, they
discovered that they had to pay federal tax on the capital gains earned by the fund when it sold some of
the bonds it held. Nat was as surprised as they were. Based on these facts, which of the following
statements is necessarily true?
I. Because Nat was as surprised as they were, he is guiltless.
II. Nat is subject to civil liability payments.
III. Nat will be subject to the criminal penalties for fraud and may spend time in prison.
A. III only
B. II only
C. I only
D. II and III only
Answer: B
Explanation:
Only Selection II is an accurate statement. In telling his clients that the returns earned on a
municipal bond fund were totally tax-free, Nat misled the clients, whether intentionally or not. This
constitutes fraud, and Nat is, at a minimum subject to civil liability payments, so this is "necessarily" true.
Whether or not Nat will be subject to criminal penalties for fraud and spend time in prison depends on his
ability to prove that he had no knowledge that he was misleading his clients.
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