Which One of the Following Is Not True About Balanced

question 12

Multiple Choice

Which one of the following is not true about balanced funds?

• A) Such funds are portfolios of mortgage securities and preferred stock.
• B) The proportions of stocks and bonds determine the level of return for each fund.
• C) They typically generate a higher proportion of income than growth and income funds and are less volatile.
• D) Investors who have a few more years to retirement and are typically in their early 50s are attracted to such funds.

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Definitions:

Ending Inventory

The final value of goods available for sale at the end of an accounting period, calculated before the next period's beginning inventory.

Cost of Goods Sold

An expense reflecting the direct costs attributable to the production of the goods sold by a company.

LIFO Inventory Method

An accounting method that assumes the last items of inventory purchased are the first to be used or sold, affecting the cost of goods sold and inventory valuation.

FIFO Inventory Method

An accounting method for valuing inventory that assumes the first items purchased are the first ones sold.