Advantages of Mutual Funds Include

question 37

Multiple Choice

Advantages of mutual funds include:

• A)mutual funds outperform the market, on average.
• B)efficient diversification.
• C)exceptionally low level of risk.
• D)All of the above

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Definitions:

Average Rate of Return

A financial ratio used to estimate the profitability of investments by dividing the average annual profit by the initial investment cost.

Present Values

Refers to the current worth of a future sum of money or stream of cash flows given a specified rate of return.

Capital Investment Proposals

Proposals for significant investments in long-term assets, often analyzed for their potential to generate future profits and cash flows.

Evaluating

The process of assessing or appraising the performance, value, or condition of an entity or component.