Which of the Following Is Not One of the Advantages

question 59

Multiple Choice

Which of the following is not one of the advantages of bond mutual funds?

• A)Immediate diversification of the bond portfolio
• B)Having a professional fund manager evaluate which bonds to buy and sell
• C)Having to pay for the professional fund manager and other expenses in the expense ratio,thus lowering yield
• D)Diversification of risk,as the investment is spread among government,corporate,and mortgage-backed bonds

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Definitions:

UCC

United States commercial ventures are directed by the broad legal standards set within the Uniform Commercial Code.

Shipment Contract

A type of contract specifying that the seller is obligated to send the goods to the buyer, but the risk of loss passes to the buyer when the goods are duly delivered to the carrier.

Tender Of Delivery

A requirement that a seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery.

Risk Of Loss

A provision in contracts determining who bears the risk for damage to goods after purchase but before delivery.