How do Contra Mutual Funds approach the concept of asset value? Option: "They avoid investing in assets with fluctuating values", "They prioritize assets with stable and predictable values", "They seek to capitalize on distorted asset values caused by over-performance or under-performance", "They believe that current market prices always reflect the true value of assets"

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How do Contra Mutual Funds approach the concept of asset value?

"They avoid investing in assets with fluctuating values"

"They prioritize assets with stable and predictable values"

"They seek to capitalize on distorted asset values caused by over-performance or under-performance"

"They believe that current market prices always reflect the true value of assets"

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What is the primary investment strategy of Contra Mutual Funds?

"Maintaining a balanced portfolio with a mix of high-risk and low-risk assets"

"Investing in stocks that are currently underperforming or undervalued"

"Following current market trends and investing in popular assets"

"Investing in stocks experiencing rapid growth and high demand"

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What is the primary difference in the underlying factors considered by value funds and contra funds?

"Value funds target companies with low debt levels, while contra funds are more tolerant of companies with higher leverage"

"Value funds focus on companies with strong management teams, while contra funds prioritize companies with unique products or services"

"Value funds consider factors like investor sentiment and market inefficiencies, while contra funds focus on broader economic or sectoral issues affecting company performance"

"Value funds look for companies with a history of consistent profitability, while contra funds seek companies with potential for rapid growth"

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What distinguishes contra funds from other investment strategies?

"They invest in companies or sectors that are currently out of favor with the market"

"They prioritize investments in emerging markets with high growth potential"

"They focus on companies with a proven track record of high dividends"

"They seek to replicate the performance of a specific market index"

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Which of the following is a characteristic shared by both value funds and contra funds?

"They are considered low-risk investments suitable for short-term goals"

"They are actively managed funds with a portfolio manager making investment decisions"

"They primarily invest in fixed-income securities like bonds"

"They typically have a short investment horizon of less than one year"

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What is a key characteristic of Contra Mutual Funds regarding their investment horizon?

"They aim to generate returns within a few weeks"

"They primarily focus on daily trading activities"

"They are best suited for long-term investments"

"They are ideal for short-term investments"