Mutual Funds Have Several Disadvantages

question 11

Multiple Choice

Mutual funds have several disadvantages. Which of the following would apply?

• A)Diversification of assets reduces risk
• B)Mutual funds allow an investor to choose an international portfolio with high risk
• C)Mutual funds, on average, do not outperform the market
• D)No-load funds minimize transaction costs

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Definitions:

Embryonic

Pertaining to an embryo or the development phase of a living being immediately after fertilization, during which rapid growth and formation of primary structures occur.

Fetal

Pertaining to an unborn offspring within the womb, particularly after the major structures and organs have begun to develop.

Gestation

The period of development between fertilization and birth in viviparous organisms, often referring to human pregnancy.

Fetus

The developmental stage of a human being in the womb from the ninth week after fertilization until birth.