The Difference Between Balanced Funds and Asset Allocation Funds Is

question 40

Multiple Choice

The difference between balanced funds and asset allocation funds is that _____.

• A) balanced funds invest in bonds while asset allocation funds do not
• B) asset allocation funds invest in bonds while balanced funds do not
• C) balanced funds have relatively stable proportions of stocks and bonds while the proportions may vary dramatically for asset allocation funds
• D) balanced funds make no capital gains distributions and asset allocation funds make both dividend and capital gains distributions

---

Definitions:

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at reaching agreements that regulate working conditions.

Public Employees

Individuals who work for government bodies at the federal, state, or local level, contributing to the administration and implementation of public services and policies.

Private-sector Counterparts

Refers to organizations and businesses in the non-public sector that correspond or are equivalent to entities in the public sector.

Good Faith Bargaining

An approach where negotiating parties engage in sincere, honest, and open discussions to reach a mutually beneficial agreement.