Which of the Following Is Not True Regarding Mutual Funds

question 25

Multiple Choice

Which of the following is not true regarding mutual funds?

• A) They are a key financial intermediary.
• B) They provide an important service to individual investors seeking to invest funds.
• C) Most mutual funds use experienced portfolio managers, so investors do not have to manage the portfolio themselves.
• D) They provide a way for individual investors to diversify, but most individual investors are unable to afford the purchase of mutual fund shares.

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Definitions:

Plaintiff

A plaintiff is the party who initiates a lawsuit against another party (the defendant) in a court of law, seeking legal remedy for a dispute or injury.

Tort

A civil wrong that causes someone else to suffer loss or harm resulting in legal liability for the person who commits the tortious act.

Government

The system or group of people governing an organized community, often a state, including institutions and officials with authority to make and enforce laws.

Prosecutes

The act or process of conducting a legal action against someone in a court of law for a criminal offense.