The Difference Between Balanced Funds and Asset Allocation Funds Is

question 14

Multiple Choice

The difference between balanced funds and asset allocation funds is that ________.

• A)balanced funds invest in bonds while asset allocation funds do not
• B)asset allocation funds invest in bonds while balanced funds do not
• C)balanced funds have relatively stable proportions of shares and bonds while the proportions may vary dramatically for asset allocation funds
• D)balanced funds make no capital gains distributions and asset allocation funds make both dividend and capital gains distributions

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