A Stock Mutual Fund's Primary Advantage Is to Allow

question 59

Multiple Choice

A stock mutual fund's primary advantage is to allow

• A) investors to diversify away systematic risk.
• B) investors to diversify away all risk.
• C) investors to diversify away idiosyncratic risk.
• D) the rich to avoid taxes.

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Definitions:

Finger-like Projections

Extensions found on the surface of certain cells or within bodily organs that increase surface area for absorption or sensory perception.

Mucosa

The moist, inner lining of some organs and body cavities, such as the nose, mouth, lungs, and stomach.

Villi

Small fingerlike projections that extend into the lumen of the small intestine, increasing its surface area for absorption.

Medial Margin

The edge or boundary closest to the midline of the body or a body part.