Which Type of Mutual Fund Invests Primarily in High-Yield,high-Risk Corporate

question 74

Multiple Choice

Which type of mutual fund invests primarily in high-yield,high-risk corporate bonds?

• A)junk bond fund
• B)intermediate corporate bond fund
• C)municipal bond fund
• D)short-term government bond fund
• E)world bond fund

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Definitions:

Tender Offers

refer to a public proposition by a person or entity to buy shares of a company from its shareholders at a specified price for a certain period, often aiming to gain control of the company.

Proxy Solicitations

The process of requesting the authorization from shareholders to vote on their behalf in company decisions, typically at shareholder meetings.

Sarbanes-Oxley Act

A U.S. federal law aimed at protecting investors from fraudulent accounting activities by corporations, enacted in 2002 in response to major corporate and accounting scandals.

Chief Financial Officer

A high-ranking executive responsible for managing the financial actions of a company, including financial planning, risk management, and financial reporting.