Which One of the Following Is False

question 27

Multiple Choice

Which one of the following is false?

• A)Mutual funds include investments in stocks and bonds.
• 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 for the investor to evaluate a mutual fund.
• E)Mutual fund investments range from very conservative to extremely speculative investments.

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Definitions:

Marginal Benefit (MB)

The extra advantage gained by using an additional unit of a product or service.

Marginal Cost (MC)

The financial cost of creating an additional unit of a product or service.

Prison Rates

The number of individuals incarcerated within a prison system per 100,000 population in a specific geographic area.

Crime Rates

The number of reported criminal incidents as a proportion of the population in a given area during a specified period.