Who Accepts All of the Risk Associated with a Mutual

question 23

Multiple Choice

Who accepts all of the risk associated with a mutual fund's portfolio of stocks and/or bonds?

• A)the fund's managers
• B)the fund's shareholders
• C)the federal government
• D)the corporations that originally issued the stocks and/or bonds held by the fund

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Definitions:

Loudness

The characteristic of a sound that is primarily a psychological correlate of physical strength (amplitude).

Sound Wave

A type of pressure wave caused by the vibration of an object, which travels through a medium (e.g., air) and is perceived as sound.

Intensity

The degree of strength, force, or energy in a phenomenon or activity.

Convergence

The turning inward of the eyes, which occurs when they focus on a nearby object.