Which of the Following Is True About Mutual Funds

question 69

Multiple Choice

Which of the following is true about mutual funds?

• A)There are five kinds of mutual funds with different investing objectives.
• B)The professional management mutual funds consistently beats the TSX index returns.
• C)Dividends received from their investments are used to pay the fund's expenses.
• D)Dividends, interest and capital gains are distributed to mutual fund unit holders.

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Definitions:

Forecast Errors

The difference between the actual outcomes and the predicted outcomes in forecasting, indicating the accuracy of the forecasts.

Salespersons' Estimates

Salespersons' estimates are forecasts or predictions made by sales professionals regarding future sales volumes based on their experience, market knowledge, and existing trends.

Demand Forecasts

The process of estimating the future demand for a company's products or services based on historical sales data, market trends, and other factors.

Alpha

A coefficient in finance representing the performance of an investment relative to a suitable market index.