A Stock Mutual Fund Is Generally

question 58

Multiple Choice

A stock mutual fund is generally

• A) less risky than buying individual stocks.
• B) more risky than buying individual stocks.
• C) just as risky as buying individual stocks.
• D) a way for the rich to avoid taxes.

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Definitions:

Semiannually

Occurring twice a year, typically every six months, often used in the context of payments, evaluations, or reporting.

Contract Rate

The contract rate is the interest rate specified in a financial contract or agreement.

Interest Payments

Interest payments are amounts paid for the use of borrowed money or for the delay in repayment of a debt.

Bond Payable

A financial instrument representing a loan made by an investor to a borrower, typically a corporate or governmental borrower, to be repaid with interest.