Which of the Following Is True Regarding Equity Mutual Funds

question 56

Multiple Choice

Which of the following is true regarding equity mutual funds? I) They invest primarily in stock.II) They may hold fixed-income securities, as well as stock.III) Most hold money market securities, as well as stock.IV) Two types of equity funds are income funds and growth funds.

• A) I and IV
• B) I, III, and IV
• C) I, II, and IV
• D) I, II, and III
• E) I, II, III, and IV

---

Definitions:

Pricing Aggressively

A strategy where a business sets lower prices with the aim of gaining market share or driving competitors out of the market.

Specific Threshold

A determined point or value at which an action is triggered or a change occurs, often used in contexts such as operations, finance, and technology.

Relevant Information

Information that is applicable and helpful in making a decision, typically due to its timeliness, accuracy, and context.

Salaried Manager

An employee who receives a fixed compensation for their work over a period, typically annually or monthly, regardless of hours worked.