Which One of the Following Statements Is False

question 53

Multiple Choice

Which one of the following statements is false?

• A) The responsibility for choosing the right mutual fund rests with the individual investor.
• B) Professional fund managers do make mistakes.
• C) Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments.
• D) There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.
• E) Individual investors should be involved in choosing a mutual fund because they know how the objectives of a mutual fund match their own investment objectives.

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Definitions:

Franchisee

An individual or company that has obtained the rights to use a brand's name, products, and processes to sell goods or services.

Direct Investment

The purchase of a substantial stake in a foreign company or the establishment of business operations in a foreign country, such as a factory or other facility.

Greatest Potential Risk

Refers to the highest level of uncertainty or danger that could impact the success or existence of a project or investment.

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country.