The Primary Advantage Gained by Purchasing a Mutual Fund Rather

question 76

Multiple Choice

The primary advantage gained by purchasing a mutual fund rather than an individual stock is

• A)deposit insurance.
• B)increased risk and return.
• C)diversification.
• D)uniformly lower brokerage fees.

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Definitions:

Price Changes

Adjustments in the cost of goods or services in the economy, which can be influenced by factors such as supply and demand or inflation.

Output Quota

A limit set, usually by a governing body, on the amount of a product that can be produced or sold within a certain period.

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and often higher prices.