When at Least Two-Thirds of a Bond Mutual Fund's Portfolio

question 5

Multiple Choice

When at least two-thirds of a bond mutual fund's portfolio consists of bonds rated below Baa by Moody's or BBB by Standard and Poor's, the fund is called a ____ fund.

• A) Growth
• B) capital appreciation
• C) junk bond
• D) leveraged bond
• E) none of the above

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Definitions:

Disadvantages

The negative or less favorable aspects of something that may hinder success or efficiency.

Designated Groups

Categories of people identified for special consideration or protection under laws or policies, often related to employment equity.

Valuable

Describes something that holds great worth or importance, often due to its utility, rarity, or contribution towards achieving a goal.

Organized

Having a structured and systematic arrangement; often refers to entities or groups that are systematically coordinated, such as labor unions.