Which One of the Following Is False

question 102

Multiple Choice

Which one of the following is false?

• A)Most mutual funds invest in stocks,bonds,and other securities.
• 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 to evaluate a mutual funD.
• E)Mutual fund investments range from very conservative to very speculative investments.

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Definitions:

Box Plot

A standardized way of displaying the distribution of data based on a five number summary: minimum, first quartile, median, third quartile, and maximum.

Distribution

The method by which something is distributed among a group or dispersed across an area.

Third Quartile

The value below which 75% of the data in a data set falls, or the upper quartile in a distribution of data.

Hours

A unit of time equal to 60 minutes or 3,600 seconds, used to measure the duration of events or the length of time allocated to activities.