Which of the Following Is False Regarding Mutual Funds

question 6

Multiple Choice

Which of the following is false regarding mutual funds?

• A) A mutual fund can deviate from its stated investment objective.
• B) Mutual funds are generally managed without concern for the tax consequence to its shareholders.
• C) It is common for mutual funds to underperform the stock market.
• D) Mutual funds have experienced a decline in assets over the past twenty years.
• E) Mutual fund investing has increased in part due to the growth of defined contribution plans.

---

Definitions:

Conditions and Warranties

Terms specified in a contract that are deemed essential (conditions) and those seen as additional promises (warranties).

Bought by Sample

Bought by Sample means purchasing goods based on a sample shown, implying that the bulk purchase should match the quality and characteristics of the sample.

Title to Bark Mulch

The legal ownership of bark mulch, indicating the rights of possession, use, and disposal of the material.

Pre-delivery Preparation

Activities or procedures performed to ensure a product or service is ready for delivery or use, often involving checks and adjustments.