A Mutual Fund Typically Performs All of the Following Functions,except

question 85

Multiple Choice

A mutual fund typically performs all of the following functions,except

• A) Provides alternative risk-return options.
• B) Eliminates unsystematic risk.
• C) Provides diversification.
• D) Derives a risk-adjusted performance that is consistently superior to risk-adjusted net return of the aggregate market.
• E) Administers the account, keeps records and provides timely information.

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Definitions:

Anastomoses

Natural communication, direct or indirect, between two blood vessels or other tubular structures. An opening created by surgery, trauma, or disease between two or more normally separate spaces or organs.

Aponeurosis

A flat, broad tendon-like structure that connects muscles to the parts they move or to other muscles.

Posterior Cruciate Ligament

A ligament in the knee connecting the femur (thighbone) to the tibia (shinbone), crucial for stabilizing the knee and preventing it from moving backward.

Anterior Cruciate Ligament

A key ligament within the knee joint that connects the femur (thighbone) to the tibia (shinbone), critical for stabilizing the knee.