Which of the Following Statements About Managed Funds Is Incorrect

question 105

Multiple Choice

Which of the following statements about managed funds is incorrect?

• A) The assets of large managed funds may be managed by several professional managers.
• B) A mutual fund is required to use the services of a mutual fund custodian.
• C) Sources of funds for a managed fund may be in the form of monthly payments.
• D) For Australia, recent figures show that the statutory funds of life offices have the largest amounts of assets under management.

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Definitions:

Reduction

The act of decreasing or lowering in amount, quantity, or degree.

Amortized Cost

Amortized cost is an accounting methodology for valuing certain financial assets or liabilities, considering both the initial principal and the interest accrued over time.

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business.

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Investments in a small quantity of stock, potentially in smaller or more speculative companies, as part of a diversified portfolio.