1. Investors are naturally attracted to mutual funds and hedge funds that perform well. However, they should be suspicious when a fund reports that is continually achieving superior performance, even when many other types of investment funds are struggling. The high performance may be due to fraudulent reporting. Investors want to believe that the reports are true even when they should be suspicious.
Describe your behavior when investing. Are you suspicious when a fund suggests that its performance is always better than that of other funds?
2. Read one practical article about how psychology affects decisions when investing in mutual funds. You can easily retrieve possible articles by doing an online search using the terms "psychology" and "investing in mutual funds." Summarize the main points of the article.