Which One of the Following Is Not a True Statement

question 61

Multiple Choice

Which one of the following is not a true statement?

• A)Most mutual funds invest in stocks, bonds, and other securities.
• B)Diversification provided by a mutual fund reduces risk.
• C)The goals of one mutual fund investor may differ from those of another.
• D)Since mutual fund managers are professionals, there is no need to evaluate a mutual fund.
• E)Mutual fund investments range from very conservative to very speculative investments.

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Definitions:

Annual Rate

A projection of a rate over a period of one year, often used in the context of interest rates, inflation, or growth rates.

Price Index

A measure showing the average level of prices for a specific set of goods and services over a period, indicating inflation or deflation.

Base Year

A specific year chosen as a point of reference or comparison for financial or economic data.

Price Index

A statistical measure that shows changes in the price level of a basket of consumer goods and services over a period of time.