Which One of the Following Is False

question 108

Multiple Choice

Which one of the following is false?

• 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:

Equity

Fairness or justice in the way people are treated within the economy, often in terms of the distribution of wealth.

Efficient Share

The optimal allocation or distribution of resources and goods in a way that maximizes productivity and utility without waste.

Efficiently Used

Utilized in a manner that maximizes productivity or effectiveness while minimizing waste or unnecessary expenditure of resources.

Scarcity

The fundamental economic problem of having seemingly unlimited human wants in a world of limited resources.