What Is Not an Disadvantage of Investing in Mutual Funds

question 102

Multiple Choice

What is not an disadvantage of investing in mutual funds?

• A)Diversification
• B)Professional management fees
• C)Inability to control capital gains
• D)Potential market risk
• E)Withdrawal costs

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

James-Lange Theory

A theory of emotion proposing that emotions result from the perception of bodily reactions to stimuli, suggesting that physiological arousal precedes the emotional experience.

Evolutionary Theory

A scientific theory that explains the diversity of life on Earth through mechanisms such as natural selection and genetic mutation over time.

Two-Factor Theory

A psychological theory proposing that emotional experiences arise from a combination of a state of physiological arousal and a cognitive interpretation of that arousal.