Which of the Following Is Not a Benefit to an Individual

question 76

Multiple Choice

Which of the following is not a benefit to an individual purchasing a mutual fund?

• A) reduced risk
• B) lower transactions costs
• C) free-riding
• D) diversification

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Definitions:

Break-even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Negative Economic Profits

A situation where a firm's total revenues are less than its total costs, including both explicit and implicit costs, indicating a loss.

Output Level

The quantity of goods or services produced by a company, industry, or economic system at a given time.

Average Revenue

The amount of income generated per unit of sale or the total revenue divided by the quantity of products or services sold.