Caroline Campbell Is Buying Shares in a Mutual Fund That

question 123

Multiple Choice

Caroline Campbell is buying shares in a mutual fund that invests in bonds offered by foreign companies and governments.What type of mutual fund is she buying?

• A)Junk bond fund
• B)Intermediate corporate bond fund
• C)Municipal bond fund
• D)Short-term government bond
• E)World bond fund

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Definitions:

Intrinsic Value

The actual, underlying worth of an asset, independent of its current market price, based on its fundamental characteristics.

Technical Analysts

Professionals who evaluate securities by analyzing statistics generated by market activity, such as past prices and volume, to predict future price movements.

Fundamental Analysts

Fundamental analysts evaluate securities by attempting to measure their intrinsic value by examining related economic, financial, and other qualitative and quantitative factors.

Past Price Movements

Historical changes in the price levels of assets, often analyzed in financial markets to identify trends or patterns.