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Which of the Following Is True Regarding Equity Mutual Funds

question 56

Multiple Choice

Which of the following is true regarding equity mutual funds? I) They invest primarily in stock.II) They may hold fixed-income securities, as well as stock.III) Most hold money market securities, as well as stock.IV) Two types of equity funds are income funds and growth funds.


Definitions:

Cash Flow From Assets

The total amount of cash generated by a company’s business operations after accounting for capital expenditures and additions to net working capital.

Book Value

The value of an asset according to its balance sheet account balance, representing the cost of the asset minus accumulated depreciation.

Market Value

The current value at which an asset or company can be bought or sold on the open market.

Financial Position

A company's monetary resources and obligations at a given point in time, reflected in its balance sheet.

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