Which of the Following Seeks High Total Return by Maintaining

question 131

Multiple Choice

Which of the following seeks high total return by maintaining precise amounts within each of the various types of asset that the fund invests in?

• A)Funds of fund
• B)Family of funds
• C)Fixed-income securities
• D)Money market instruments
• E)Asset allocation fund

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Definitions:

Sales Revenues

The total amount generated from selling goods or services before any expenses are subtracted.

Cash Operating Costs

The expenses a company incurs during its normal business operations that require cash payments, such as rent, utilities, and payroll.

Annual Depreciation

The portion of the cost of a fixed asset that is allocated as an expense in each accounting period during its useful life.

Simple Rate of Return

A financial metric used to evaluate the profitability of an investment, calculated as the annual incremental net operating income divided by the initial investment cost.