Which of the Following Is an Advantage of Purchasing Mutual

question 5

Multiple Choice

Which of the following is an advantage of purchasing mutual funds?

• A) Spreading your investment over many securities may limit your chances for a large return.
• B) There costs associated with mutual funds which are not accrues with individual securities.
• C) A mutual fund allows for diversification without having to purchase numerous securities.
• D) Professional money managers are better able to make security decisions than are individual investors.
• E) The losses incurred from mutual funds are covered by the CIPF.

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Definitions:

STDs

Sexually transmitted diseases, infections transmitted through sexual contact, caused by bacteria, viruses, or parasites.

Bacterial Infection

The invasion and multiplication of bacteria in body tissues, which can cause illness and disease ranging from mild to severe.

Menopause

The time in a woman's life, usually occurring between ages 45 and 55, when her ovaries stop producing eggs, and she no longer has menstrual periods.

Menstruation Cessation

The stoppage of the menstrual cycle, which can occur naturally through menopause or as a result of medical conditions or interventions.