Which Combination of Funds Is Most Suitable for an Investor

question 49

Multiple Choice

Which combination of funds is most suitable for an investor seeking to diversify across asset classes?

• A) A balanced fund, an S&P 500 index fund, an intermediate term bond fund.
• B) A growth and income fund, a large cap equity fund, Dow-Jones Industrial Average Index Fund.
• C) An S&P 500 Index Fund, an intermediate term bond fund, a REIT.
• D) An energy fund, a pharmaceuticals fund, a financial services fund.

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Definitions:

Fatigue

A state of physical or mental weariness resulting from exertion or prolonged stress.

Productivity

Measures the efficiency of production in terms of the output of goods and services relative to the input of resources.

Classical Viewpoint

An early prescription on management that advocated a high specialization of labour, intensive coordination, and centralized decision making.

Organizational Behaviour

The study of how people interact within groups in a workplace setting, with a focus on improving organizational effectiveness, efficiency, and employee well-being.