Which of the Following Is NOT Generally a Benefit Offered

question 34

Multiple Choice

Which of the following is NOT generally a benefit offered by funds management?

• A)They generally guarantee a minimum return on investor's funds.
• B)They can achieve economies of scale in relation to research and brokerage costs.
• C)Managed funds can give investors access to diversified portfolios.
• D)Fund managers hire investment experts that most individuals could not afford to hire directly.
• E)All of these.

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Definitions:

Production Function

A model in economics that links physical output of a production process to physical inputs or factors of production.

Returns To Scale

An economic concept describing how the output of a production process changes as the scale of inputs is increased, divided into increasing, constant, or decreasing returns to scale.

Marginal Products

The additional output resulting from a one-unit increase in the use of a particular input, holding all other inputs constant.

Exponents

Mathematical symbols representing the number of times a number or expression is multiplied by itself.