Which of the Following Is Not a Disadvantage of Investing

question 36

Multiple Choice

Which of the following is not a disadvantage of investing in mutual funds?

• A)They do not outperform the market as a group
• B)Some mutual funds may be expensive to purchase
• C)Sector funds are riskier than diversified funds
• D)With 5,000 funds to choose from, the selection of a fund is just as difficult as selecting an individual stock

---

Definitions:

Nurture

The influence of environmental factors and experiences on the development of an individual's physical and psychological attributes.

Discontinuities

Breaks or disruptions in a normally continuous process or sequence, leading to sudden changes rather than gradual developments.

Nature

The collective term for the physical aspects of the earth, including flora, fauna, geographical features, and natural occurrences, distinct from human-made elements or inventions.

Passive

Accepting or allowing what happens or what others do, without active response or resistance.