By Purchasing Shares in a Mutual Fund That Holds a Portfolio

question 26

Multiple Choice

By purchasing shares in a mutual fund that holds a portfolio of stocks,a person can

• A)benefit from fundamental analysis,since the mutual fund requires its shareholders to perform fundamental analysis on their own.
• B)benefit from fundamental analysis,since the mutual fund hires one or more individuals to perform fundamental analysis for the fund.
• C)eliminate market risk.
• D)reduce the standard deviation of his or her portfolio to zero.

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Definitions:

Upper Bound

In mathematics, the upper limit of a set of values. It is the largest value that would not be exceeded by any element of the set.

Standard Evolutionary

Approaches or algorithms inspired by biological evolution to solve optimization problems through mechanisms such as selection, mutation, and reproduction.

Sensitivity Information

Pertains to data or information whose exposure or unauthorized access might result in adverse consequences, requiring protected handling due to its critical nature.

Integer Models

Mathematical models that express relationships or problems using integers, often used in optimization to find the best solution within constraints.