Which One of These Correctly Applies to Mutual Funds

question 23

Multiple Choice

Which one of these correctly applies to mutual funds?

• A) Mutual funds are a costly means of achieving portfolio diversification.
• B) Funds are required to limit their annual fees and expenses to less than 1 percent of the portfolio value.
• C) You can generally buy additional shares in the fund at any time.
• D) Shareholders sell their shares to other shareholders.

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Definitions:

External Cause

Factors or conditions outside an individual that can influence or trigger outcomes, actions, or changes.

Anxiety Disorder

A mental health disorder characterized by feelings of anxiety, worry, or fear that are strong enough to interfere with one's daily activities.

Phobic Disorder

is a type of anxiety disorder characterized by an excessive and irrational fear of an object, situation, or activity that poses little to no actual danger.

Chemical Imbalance

A theory suggesting that mental health conditions are associated with changes in the brain's chemical systems.