Which One of the Following Statements Regarding Open-End Mutual Funds

question 53

Multiple Choice

Which one of the following statements regarding open-end mutual funds is false?

• A)The funds redeem shares at net asset value.
• B)The funds offer investors professional management.
• C)The funds offer investors a guaranteed rate of return.
• D)B and C.
• E)A and B.

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Definitions:

Senior Management

Refers to the highest level of managers within an organization who are responsible for setting strategic goals and making key decisions.

Creative Process

A sequence of thought and effort to generate original ideas and solutions, involving stages such as preparation, incubation, illumination, and verification.

Problem Recognition

The initial step in the decision-making process where an individual identifies an issue or difference from the norm that requires a solution.

Cognitive Abilities

The mental capabilities that involve reasoning, problem solving, planning, abstract thinking, complex idea comprehension, quick learning, and learning from experience.