Mutual Funds Eliminate the Systematic Risk Through Diversification

question 91

True/False

Mutual funds eliminate the systematic risk through diversification.

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Definitions:

Perfect Tender Rule

The requirement that a seller deliver goods in conformity with the contract, down to the last detail.

Rigidity

The quality of being unable to bend or be forced out of shape; lack of flexibility or adaptability.

Honesty in Fact

The genuine belief or actual state of mind devoid of intent to deceive or defraud.

Good Faith

An honest intention to act without taking an unfair advantage over another party, typically related to the fulfillment of contracts and agreements.