Investors Use Mutual Funds for Which of the Following Reasons

question 50

Multiple Choice

Investors use mutual funds for which of the following reasons?
I. to accumulate wealth
II. to minimize risk
III. as a speculative vehicle
IV. as a storehouse of value

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

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Definitions:

Replacement Projects

Investments made to replace worn-out or obsolete assets with new assets.

Expected Savings

Expected savings refer to the projected amount of money saved over a specific period due to cost reduction strategies, efficiencies, or bargain purchases.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decline in the asset's value over time.

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.