Which of the Following Are Advantages Offered by Mutual Funds

question 42

Essay

Which of the following are advantages offered by mutual funds?
I. professional portfolio management
II. dividend reinvestment
III. consistent returns in excess of the overall market rate of return
IV. modest capital outlay for investors
A) I and II only
B) I and IV only
C) II, III and IV only
D) I, II and IV only

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

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Definitions:

Big Five Traits

A model describing human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Social Desirability Bias

The inclination of individuals responding to surveys to reply in ways that they think will be positively perceived by others.

Self-Report Personality Inventories

Self-report personality inventories are psychological assessment tools in which individuals provide subjective evaluations of their own behaviors, traits, and attitudes to gauge personality.

Rorschach Test

A psychological test involving inkblots to analyze an individual's personality characteristics and emotional functioning.