Which of the Following Statements Is TRUE

question 28

Multiple Choice

Which of the following statements is TRUE?
I. A mutual fund pools money from many different investors and uses that money to invest in many different firms.
II. Mutual funds that are run by managers who try to pick the best performing stocks usually outperform the S&P 500.
III. Passive mutual funds do not try to select winning stocks; they mimic broader markets like the S&P 500.

• A) I only
• B) I and II only
• C) I and III only
• D) II and III only

---

Definitions:

Training

The process of teaching or developing in oneself or others, skills and knowledge that relate to specific useful competencies.

Symbolic Action

A conception of leadership that focuses on the ways the leader is able to frame and define reality for others. Leadership is conceived as a process of interaction rather than a thing.

Prescribed Behavior

Actions or conduct mandated or expected by societal, organizational, or specific situational norms.