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Over the Last 10 Years Four Mutual Funds All Had

question 41

Multiple Choice

Over the last 10 years four mutual funds all had the same mean rate of return, 12%. These mutual funds haddifferent standard deviations as follows: Mutual Money 8%, Co-joined Investments 6%, Together Fund 4%, Allfor One Fund 9%. Which mutual fund investment is the most consistent in rate of return?

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Definitions:

Personal Consumption Expenditures

Refers to the value of goods and services purchased by households for the purpose of consumption.

Gross Private Domestic Investment

The total amount of money spent on investment in physical assets (such as buildings and machinery) by the private sector.

Government Spending

The total amount of money that the government expends on goods, services, and public projects to provide for citizens or stimulate the economy.

Aggregate Spending

The total spending in an economy on domestic goods and services, including consumption, investment, government expenditures, and net exports.

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