Which of the Following Statements Best Describes Mutual Funds

question 42

Multiple Choice

Which of the following statements best describes mutual funds?

• A) They are illegal in the United States, but popular in Europe.
• B) They enable investors to buy many shares of stock in a single firm at a lower cost than using a stockbroker.
• C) They provide good investment returns, but insufficient diversification.
• D) They enable many investors with limited funds to buy a diversified portfolio.
• E) They appeal only to wealthy investors.

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Definitions:

Tropic Interactions

Ecological interactions that cause organisms to move or grow toward or away from stimuli, including phototropism, hydrotropism, and others.

Ecosystem Function

The collective biological, geochemical, and physical processes within an ecosystem, which support and regulate the flux of energy and matter.

Top-down Processes

Cognitive processes that are guided by higher-level mental processes, such as experience, expectations, and motivations.

Food Webs

Complex diagrams that show the feeding relationships among species within a community, highlighting who eats whom and the transfer of energy through the ecosystem.