Donel Is Investing in a Mutual Fund That Really Is

question 28

Multiple Choice

Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n) ________ fund.

• A)growth-and-income
• B)sector
• C)life cycle
• D)asset allocation
• E)bond

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Definitions:

Adoption

The act of beginning to use, implement, or support something new, such as a technology, idea, or product.

Supply And Demand

Fundamental economic model that explains how the price and quantity of goods and services are determined in a market based on their availability and consumers' desire for them.

Social Exchange Theory

explores how human relationships are formed and maintained based on the exchange of resources, including tangible goods and intangible services, and the perceived costs and benefits of these exchanges.

Trend Analysis

The practice of collecting and analyzing data to identify patterns, changes, and potential future movements in a specific market or field of interest.