Question

TINSTAAFL suggests that:

a.You should be very careful if you think you have found a way to make free money

b. Star investment advisors will rarely be worth their fees

c.There is a price to be paid for unusually high returns, whether it is in effort or in risk

d. All of the above

Answer 1

Solution:

TINSTAAFL suggests that "there is no free lunch and there is an opportunity cost associated with every decision

Option A is correct as there is no way to get free return

Option B is correct as Star investment advisors will rarely be worth their fees because when there will be a tradeoff as the clients are paying a higher fee to get the services of star advisor.

Option C is correct as a higher return will come with higher risk.

Hence the correct option is D) all of the above