A sales representative from an investment company is trying to convince a young couple to invest in one of the company's mutual funds. He will probably be most successful if
A) he mentions the names of other people who have invested in the fund.
B) he stresses that the fund has had solid returns in 12 of the past 15 years.
C) he stresses that the fund has only lost money in 3 of the past 15 years.
D) he leaves a detailed prospectus containing a lot of statistical analyses.

Question

Quizplus · Accepted Answer

The sales representative is trying to convince the young couple to invest in the mutual fund, and the best way to do that is by emphasizing the fund's past performance. Option B is the most effective because it shows that the fund has had solid returns for a vast majority of the past years, providing proof that investing in the fund is a safe and reliable option. While mentioning previous investors may be a helpful strategy, it might not be as impactful as showing concrete examples of how the mutual fund has performed in the past. Leaving a prospectus with a lot of detailed statistics might be overwhelming for the young couple, and they may not take the time to read it.

A Sales Representative from an Investment Company Is Trying to Convince