Which One of the Following Is a True Statement

question 94

Multiple Choice

Which one of the following is a true statement?

• A) Professional management is an especially important factor for investors purchasing a mutual fund.
• B) The only reason investors purchase mutual funds is interest rate risk.
• C) With mutual funds may experience loss, your original investment is guaranteed.
• D) Mutual funds are all designed to appeal to conservative investors with no investment goals.
• E) Professional market timers will always choose the right mutual fund for a particular individual.

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Definitions:

Interest Expense

Interest expense refers to the cost incurred by an entity for borrowed funds over a period of time.

Semiannually

Semiannually implies an occurrence or calculation that happens twice a year, often used in the context of interest payments or reporting periods.

Annually

Occurring once every year or relating to a period of one year.

Current Yield

Yearly returns in the form of interest or dividends as a ratio of the security's present price.