Which of the Following Is Not a Characteristic of a Fund

question 48

Multiple Choice

Which of the following is not a characteristic of a fund as defined by GASB standards?

• A) An accounting entity.
• B) A fiscal entity.
• C) A segregated quantity of cash and other financial resources on deposit with a designated trustee.
• D) A self-balancing set of accounts.

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Definitions:

Risky Securities

Financial instruments carrying a higher potential for loss, often offering greater potential returns to compensate for the increased risk.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, calculated as the weighted average of the covariance of each asset in the portfolio.

Coefficient of Correlation

A statistical measure that indicates the degree to which two variables move in relation to each other, ranging from -1 to 1.