Which of the Following Accurately Describe Reasons for Investing in Mutual

question 43

Multiple Choice

Which of the following accurately describe reasons for investing in mutual funds?
I. to effectively control the timing of capital gains for tax purposes
II. to achieve portfolio diversification at a reasonable cost
III. to invest in unfamiliar sectors or geographic regions
IV. to outperform the market

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

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Definitions:

Showa

A period in Japanese history aligned with the reign of Emperor Hirohito, from 1926 to 1989, marked by significant cultural and economic changes.

Nishiki-E

A type of multi-colored Japanese woodblock printing; known for its richly colored images and complex production process, primarily used in Ukiyo-e.

Brocade Pictures

Artworks that resemble or incorporate brocade, a type of richly decorative woven fabric, often to achieve a textured or luxurious effect.

Showa

A period in Japanese history corresponding to the reign of Emperor Hirohito (1926-1989), marked by significant changes including World War II.