Which of the Following Statements Is False

question 49

Multiple Choice

Which of the following statements is false?

• A)Investors purchase mutual funds for diversification.
• B)Investors purchase mutual funds because of professional management.
• C)Investors who purchase mutual funds are guaranteed a higher rate of return than a comparable investment in stocks or bonds.
• D)Professional mutual fund managers work for an investment company.
• E)Even the best portfolio managers sometimes make mistakes.

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Definitions:

FOB

An international commercial term indicating that the seller delivers the goods on board a vessel designated by the buyer.

Abbreviation

A shortened form of a word or phrase used primarily in writing to represent the complete form.

Credit Terms

The agreements between sellers and buyers that stipulate the payment amount and due dates of payments to be made for goods and services.

Invoice Price

The original price of goods or services listed on an invoice, before any discounts or adjustments are applied.