Which of the Following Statements About Mutual Funds Is Correct

question 102

Multiple Choice

Which of the following statements about mutual funds is correct?

• A)A mutual fund is a financial intermediary.
• B)A mutual fund acquires its funds primarily by selling shares to the public.
• C)People who buy shares from a mutual fund accept all of the risk and return associated with the mutual fund's portfolio.
• D)All of the above are correct.

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Definitions:

Convergent Thinking

A problem-solving approach that focuses on finding a single, best solution to a problem by converging on a solution based on logic and facts.

Collaborative Decision Making

A process where two or more individuals work together to make a decision.

Cyclical Process

A process that repeats itself in cycles, where the end of one cycle is the beginning of the next.

Prioritization Matrix

A decision-making tool used to rank different options or projects based on specific criteria, helping to allocate resources efficiently.