A Mutual Fund

question 135

Multiple Choice

A mutual fund:

• A) always includes a base year.
• B) owns a diversified portfolio.
• C) always earns a profit.
• D) offers a lower rate of return for any given level of risk.

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Definitions:

Raw Material

The basic material from which a product is made, often used in manufacturing or production processes.

Pounds

A unit of weight commonly used in the British, United States customary and other systems of measurement.

Work in Process

Inventory that includes materials that have been partially processed but are not yet finished goods.

Standard Costs

Estimated or predetermined costs of manufacturing, selling, or doing something, which are used for budgetary and costing purposes.