Rank the Following Fund Category from Most Risky to Least

question 59

Multiple Choice

Rank the following fund category from most risky to least risky.
I.Equity growth fund
II.Balanced fund
III.Sector fund
IV.Money market fund

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

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, which leads to firms being price takers.

Smartphones

Mobile phones that offer advanced functionalities, including internet connectivity, apps, and touchscreen interface.

MC < ATC

A condition where the marginal cost of producing an additional unit is less than the average total cost, implying the company can lower its average total cost by increasing production.

Perfectly Competitive

A perfectly competitive market is characterized by many buyers and sellers, homogenous products, and free entry and exit, leading to price determination by market forces.