Which of the Following Stock Funds Would Probably Have the Lowest

question 96

Multiple Choice

Which of the following stock funds would probably have the lowest risk and return?

• A)Index
• B)Capital appreciation
• C)Income
• D)Sector funds

---

Definitions:

Consumption

Consumption encompasses the acquisition and use of goods and services by households to satisfy their needs and wants.

Induced Consumption

Consumer spending that is influenced by changes in income, differentiating from autonomous consumption which does not vary with income.

Disposable Income

The liquidity households have for spending and saving, after income taxes have been deducted.

Consumption

The act of using goods and services by households that leads to a decrease in their availability.