Which One of the Following Is a True Statement Regarding

question 62

Multiple Choice

Which one of the following is a true statement regarding mutual funds?

• A)Professional management is an especially important factor for investors purchasing a mutual fund.
• B)The only reason investors purchase mutual funds is the high growth expected.
• C)While mutual funds may experience loss,your original investment is guaranteed.
• D)Mutual funds are all designed to appeal only to conservative investors.
• E)The responsibility for choosing the right mutual fund is based on the professional manager's evaluation.

---

Definitions:

Efficient Programs

Initiatives or policies designed to achieve the intended outcomes with minimum waste of resources.

Political Process

The collection of activities that influence the policies, actions, and leadership of a government or society.

Counterproductive Activities

Actions or behaviors that hinder the achievement of a goal or the functioning of a process, often resulting in the opposite of the desired outcome.

Democratic Political Process

A system of government in which power is vested in the people, who rule either directly or through freely elected representatives.