Which One of the Following Statements Concerning Managed Funds Is

question 6

Multiple Choice

Which one of the following statements concerning managed funds is correct?

• A) Managed funds are generally highly concentrated portfolios.
• B) The selection of individual securities remains with the managed fund investor.
• C) The managed fund industry is the largest financial intermediary in the United States.
• D) Managed funds were first created in the 1980s.

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Definitions:

Government Policies

Guidelines, regulations, and rules implemented by the government to influence the economy or address societal issues.

Vertical Equity

A principle of tax fairness that posits individuals with a greater ability to pay taxes should contribute more, promoting a progressive taxation system.

Horizontal Equity

The principle that individuals with similar income and assets should be treated equally by the taxation system.

Proportional Tax

A tax for which high-income and low-income taxpayers pay the same fraction of income.