Which of the Following Statements Best Describes Mutual Funds

question 42

Multiple Choice

Which of the following statements best describes mutual funds?

• A) They are illegal in the United States, but popular in Europe.
• B) They enable investors to buy many shares of stock in a single firm at a lower cost than using a stockbroker.
• C) They provide good investment returns, but insufficient diversification.
• D) They enable many investors with limited funds to buy a diversified portfolio.
• E) They appeal only to wealthy investors.

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Definitions:

REM Sleep

A phase of sleep characterized by rapid eye movements, heightened brain activity, and vivid dreaming.

Electromyograph

A diagnostic tool that records the electrical activity produced by skeletal muscles to evaluate muscle function and health.

Muscular Activity

Physical actions or movements resulting from the contraction and relaxation of muscles.

Rotating Shift Work

Employment scheduling practice where employees cycle through a series of work shifts - morning, afternoon, and night.