An Advantage of Mutual Funds Over Segregated Funds with Similar

question 77

Multiple Choice

An advantage of mutual funds over segregated funds with similar objectives is

• A)they tend to have higher returns.
• B)they are less risky.
• C)they have higher risk and returns.
• D)they have higher MERs.

---

Definitions:

Private Ownership

The holding of property by non-governmental legal entities or individuals, allowing control and use of the property according to the owner's preferences.

Dollar Votes

The “votes” that consumers cast for the production of preferred products when they purchase those products rather than the alternatives that were also available.

Product Market

A marketplace where final goods or services are bought and sold by consumers, businesses, and the government.

Laissez-Faire Capitalism

A hypothetical economic system in which the government’s economic role is limited to protecting private property and establishing a legal environment appropriate to the operation of markets in which only mutually agreeable transactions take place between buyers and sellers; sometimes referred to as “pure capitalism.”