Which of the Following Is Not a Reason the Expected

question 97

Multiple Choice

Which of the following is not a reason the expected returns on money market funds (MMFs) are low relative to bonds or stocks?

• A)The credit risk of MMFs is normally perceived to be lower than that of corporate bonds.
• B)MMFs have higher interest rate risk than bond funds.
• C)MMFs consistently generate positive returns over time, whereas bond and stock funds can experience negative returns.
• D)All of the above are reasons the returns on MMFs are low relative to bonds or stocks.

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