Which of the Following Factors Would Not Affect the Relationship

question 91

Multiple Choice

Which of the following factors would not affect the relationship between an individual's investment goals and the goals of a mutual fund?

• A)the investor's age
• B)the investor's family situation
• C)the investor's income
• D)the investor's future earning power
• E)the investor's age, the investor's family situation, the investor's income, and the investor's future earning power would affect the relationship between an investor's investment goals and the goals of a mutual fund.

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Definitions:

Coupon Payment

A periodic interest payment made to bondholders during the life of a bond.

Income Bond

A type of bond that only pays interest if the issuer has sufficient earnings to cover the interest payments.

Protective Covenants

Conditions written into financial agreements that the issuer must follow, such as restrictions on issuing more debt or making capital distributions.

Bondholders

Individuals or entities that own bonds issued by corporations or governments, entitling them to receive fixed interest payments and the return of the principal amount at maturity.