On Average, Which Type of Mutual Fund Is Expected to Have

question 59

Multiple Choice

On average, which type of mutual fund is expected to have the highest performance?

• A) Money market funds
• B) Bond funds
• C) Equity funds
• D) Municipal bond funds

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Definitions:

Equity Multiplier

is a financial ratio indicating the proportion of the company’s assets financed by stockholders' equity, showing leverage.

Balance Sheet

A balance sheet that portrays a company's financial standing in terms of assets, liabilities, and the equity of its shareholders at a particular point.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.