Which One of the Following Statements Is False

question 92

Multiple Choice

Which one of the following statements is false?

• A)Investors purchase mutual funds for diversification.
• B)Investors purchase mutual funds because of their professional management.
• C)Investors who purchase mutual funds are guaranteed a higher rate of return than if they were to purchase comparable stocks and bonds directly.
• D)Professional fund managers work for an investment company.
• E)Even the best portfolio managers sometimes make mistakes.

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Definitions:

Small Business Sector

The segment of the economy composed of independently owned companies that have fewer employees and lower revenue than larger corporations.

Traditional Distributor

A business that purchases products from manufacturers and sells them to retailers or end consumers, typically without significant alteration.

Automated

Refers to processes or systems operated with minimal human intervention, often using technology or machinery.

Online Exchange

A virtual platform where goods, services, or information are traded between parties over the internet.