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?
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?
Factorial Fund is one of the oldest and largest mutual funds in the investment industry.
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.
Last year, Factorial Fund outperformed all other funds with similar style and investment objectives.
The Fund is suitable to all investors.
The fees charged by Factorial Fund are among the lowest in the investment industry.
The assumption is that the fund will continue to perform in the same was as in the past. B wins.