Which of the Following Is an Advantage of Many Mutual

question 14

Multiple Choice

Which of the following is an advantage of many mutual funds?

• A) They are bought and sold just like stocks.
• B) They usually offer a higher return than individual stocks.
• C) They offer a guaranteed rate of return.
• D) They allow investors to diversify their portfolio of securities at relatively low cost.

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Definitions:

Disclosed Principal

A principal whose identity is made known by the agent to a third party at the time of entering into a contract, which directly affects the liability and obligations under the contract.

Partially Disclosed Principal

In a transaction context, this refers to a situation where the agent reveals the existence of a principal but does not disclose the principal's identity to the third party.

Mixed Motive Contract

A contract where parties have multiple intentions or purposes behind entering the agreement, not solely based on commercial transactions.

Contract

A legally binding agreement between two or more parties, enforceable by law, with obligations and conditions that need to be fulfilled.