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

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Definitions:

Prima Facie Duties

Obligations that are binding unless they conflict with a more important duty.

Moral Value

Principles or standards of behavior that are considered important in distinguishing right from wrong.

Moral Sentiment

An emotional response that informs or is related to one's sense of right and wrong.

Shame

A feeling resulting from the violation of a social norm.