Use the Following Two Columns of Items to Answer the Matching

question 125

Short Answer

Use the following two columns of items to answer the matching questions below:
-sector funds
A)funds that sell shares to individuals and invest the proceeds in bonds
B)mutual funds that focus on firms that pay a high level of dividends
C)mutual funds that focus on a specific industry
D)mutual funds that contain both growth stocks and stocks that pay dividends
E)mutual funds that focus on stocks that are expected to grow at a very high rate

• A)funds that sell shares to individuals and invest the proceeds in bonds
• B)mutual funds that focus on firms that pay a high level of dividends
• C)mutual funds that focus on a specific industry
• D)mutual funds that contain both growth stocks and stocks that pay dividends
• E)mutual funds that focus on stocks that are expected to grow at a very high rate

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Definitions:

Income Effect

Adjustments in the income of a person or the economy and how these adjustments affect the need for certain goods or services.

Substitution Effect

The economic principle that as prices rise or income decreases, consumers will replace more expensive items with less costly alternatives.

Income Effect

The impact of a change in an individual's income on their purchasing behavior, specifically how it affects the quantity of goods or services they buy.

Warren Buffet

A highly successful investor and philanthropist known for his value investing approach and as the principal shareholder and CEO of Berkshire Hathaway.