It Is Claimed That Mutual Funds Have Two Advantages

question 151

Multiple Choice

It is claimed that mutual funds have two advantages.The first is that mutual funds allow people with small amounts of money to diversify.The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings.

• A)Economists strongly agree with both claims.
• B)Economists are skeptical of both claims.
• C)Economists are skeptical of the first claim,but strongly agree with the second.
• D)Economists strongly agree with the first claim,but are skeptical of the second.

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Definitions:

Nonfinancial Measures

Metrics used to assess performance in areas not directly related to financial outcomes, such as customer satisfaction or employee engagement.

Operating Decisions

Choices made by management regarding the day-to-day operations of a company, which affect its operational efficiency and effectiveness.

Lean Manufacturing

An organized approach to reducing waste in manufacturing systems while maintaining productivity levels.

Raw Materials

Raw materials are the basic, unprocessed inputs used in the manufacturing process to produce finished goods.