When at Least Two-Thirds of a Bond Mutual Fund's Portfolio

question 48

Multiple Choice

When at least two-thirds of a bond mutual fund's portfolio consists of bonds rated below Baa by Moody's or BBB by Standard and Poor's, the fund is called a ____ fund.

• A)growth
• B)capital appreciation
• C)high-yield bond
• D)leveraged bond
• E)None of these are correct.

---

Definitions:

Distal End

Referring to the end of a limb or structure that is farthest from the point of attachment or the trunk of the body.

Trachea

The part of the respiratory tract between the larynx and the bronchial tree that is tubular and made of rings of cartilage and smooth muscle; also called the windpipe.

Vocal Cords

Elastic bands of muscle tissue in the larynx involved in producing sound through their vibration as air passes through.

Larynx

The voice box; an organ located in the neck responsible for producing sound.