How does the answer come out to be choice B?
The Aurora Investments Equity Icome Fund was ranked #1
out of 22 equity income funds since its inception,10/13/86,through 10/31/01 by Lipper,Inc.
1-year total returns are 2.62% and Rank (Lipper) is #18
5-years total returns are 10.87% and Rank (Lipper) is #21
10-years total returns are 13.54% and Rank (Lipper) is #5
Since inception total returns are 11.48% and Rank (Lipper) is #1
The ad shown above appeared in a financial news magazine.Why is Aurora Investment’s claim to have the #1 Equity Income Fund misleading?
A) The claim should read,”ranked #18 out of 200.”
B) Based on total Return over the pat 1,5,and 10 years,Aurora Investments Equity Income Fund was not ranked #1.
C) The claim should read,”ranked #5 out of 44.”
D) Aurora investment Equity Income Fund has been ranked #1 based on total Return since 10/31/86.
Compare Cheap UK Mobile Phones
Compare Budget USA Cellular Wireless Phones
Related posts
(A) and (C) don’t make any sense so they can be ruled out.
(D) is right, so that does not make the ad misleading.
(B) is right and is in conflict with the statement that the fund was ranked number 1