Which of the Following Is True About Mutual Funds

question 86

Multiple Choice

Which of the following is True about mutual funds?

• A)They offer a diversified portfolio of stocks to investors with specific investment objectives.
• B)Professionally managed mutual funds consistently beat the TSX index returns.
• C)Dividends received from their investments are used to pay the fund's expenses.
• D)Dividends,interest and capital gains are distributed to mutual fund unit holders.

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Definitions:

Run Out of Money

A situation where an individual or organization depletes their financial resources completely, rendering them unable to meet their financial obligations.

Chance of Success

The probability or likelihood that a specific action, endeavor, or strategy will lead to a desirable outcome or achieve specific goals.

Entrepreneurial Venture

A new business or startup that is initiated by an entrepreneur with the aim of seeking innovation, growth, and profit.

Entrepreneurs

Individuals who create, organize, and manage a new business or enterprise, taking on greater than normal financial risks in order to do so.