Which of the Following Accurately Describe Reasons for Investing in Mutual

question 43

Multiple Choice

Which of the following accurately describe reasons for investing in mutual funds?
I. to effectively control the timing of capital gains for tax purposes
II. to achieve portfolio diversification at a reasonable cost
III. to invest in unfamiliar sectors or geographic regions
IV. to outperform the market

• A) I and IV only
• B) II and III only
• C) I, II and III only
• D) I, II, III and IV

---

Definitions:

Impersonal Schemas

Generalized mental representations or frameworks that individuals use to understand and navigate the social world without personal involvement.

Perceived Features

Attributes or qualities that observers believe to exist within a person, object, or concept.

Novelty

The state or quality of being new, unique, or unusual.

Person's Perception

An individual's interpretation or understanding of the stimuli or situations they encounter.