Which of the Following Statements Is TRUE

question 28

Multiple Choice

Which of the following statements is TRUE?
I. A mutual fund pools money from many different investors and uses that money to invest in many different firms.
II. Mutual funds that are run by managers who try to pick the best performing stocks usually outperform the S&P 500.
III. Passive mutual funds do not try to select winning stocks; they mimic broader markets like the S&P 500.

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

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Definitions:

Split-Brain Patient

An individual who has undergone corpus callosotomy, a surgical procedure disconnecting the two hemispheres of the brain, often used to treat severe epilepsy.

Left Hand

The hand located on the left side of the body, often less dominant in right-handed individuals.

Brain Plasticity

The ability of the brain to change and adapt in response to experience, learning, or injury, also known as neuroplasticity.

Cerebral Hemisphere

The cerebral hemispheres are the two halves of the brain, responsible for processing different types of information, with the left side generally managing logical and analytical tasks and the right side handling creativity and spatial abilities.