Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A)Investors purchase mutual funds for diversification.
• B)Investors purchase mutual funds because of professional management.
• C)Investors who purchase mutual funds are guaranteed a higher rate of return than a comparable investment in stocks or bonds.
• D)Professional mutual fund managers work for an investment company.
• E)Even the best portfolio managers sometimes make mistakes.

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Definitions:

Variable Costs

Expenses that vary directly with the level of production or output, including costs such as raw materials and labor directly involved in manufacturing.

Price Changes

Alterations in the cost of goods or services over time, which can be influenced by factors such as supply and demand.

Agricultural Act

Legislation that regulates agricultural production, marketing, and subsidies.

Crop Insurance Programs

Government or private insurance schemes that compensate farmers for losses to their crops due to natural disasters or adverse weather conditions.