Mutual Funds

question 29

Multiple Choice

Mutual funds

• A) pool the resources of many small investors by selling these investors shares and using the proceeds to buy securities.
• B) allow small investors to obtain the benefits of lower transaction costs in purchasing securities.
• C) provide small investors a diversified portfolio that reduces risk.
• D) do all of the above.
• E) do only A and B of the above.

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Definitions:

Personalization

The process of tailoring a product, service, or content to an individual's specific needs, preferences, or interests.

Selective Thinking

A cognitive bias that involves focusing on evidence or information that supports one's beliefs while ignoring evidence that contradicts them.

Irrational Beliefs

Thoughts that are not logically consistent or not supported by evidence, often contributing to negative emotional states.

Albert Ellis

An American psychologist and psychotherapist who founded Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy focusing on identifying and changing irrational beliefs.