Which of the Following Statements Is Incorrect

question 30

Multiple Choice

Which of the following statements is incorrect?

• A)Mutual funds serve as a key financial intermediary.
• B)Managers of mutual funds do not analyze economic and industry trends.
• C)Because of their diversification, management expertise, and liquidity, mutual funds have grown at a rapid pace.
• D)Some mutual funds offer check-writing privileges.

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Definitions:

Probability

A mathematical measure of the likelihood of occurrence of a particular event, expressed as a number between 0 and 1.

Major Earthquake

An earthquake of high magnitude that has the potential to cause significant damage and loss of life, usually above a magnitude of 7 on the Richter scale.

Poisson Model

A statistical model that predicts the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Probability

The quantification of the probability that an event will take place, expressed as a number from 0 to 1, with 0 signifying that the event cannot occur and 1 signifying absolute certainty of occurrence.