Which of the Following Is Not a True Statement

question 112

Multiple Choice

Which of the following is not a true statement?

• A)Professional management is an especially important factor for investors purchasing a mutual fund.
• B)One of the many reasons why investors purchase mutual funds is diversification.
• C)With mutual funds, an occasional loss in one security is often offset by gains in other securities.
• D)Mutual funds are designed to appeal to conservative investors with long-term investment goals.
• E)The individual investor is responsible for choosing the right mutual fund.

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Definitions:

Disinflation

A decrease in the rate of inflation, indicating a slowdown in the rate at which prices increase.

Deflation

A reduction in the overall price of products and services, frequently linked with a rise in the value of currency.

Recession Of 2001

A period of temporary economic decline during which trade and industrial activity were reduced, marked particularly by the bursting of the dot-com bubble.

Endogenous Factors

Internal factors that originate within an economic system or model and determine its behavior and state.