Funds That Normally Contain a Combination of Common Stock and Fixed

question 13

Multiple Choice

Funds that normally contain a combination of common stock and fixed income securities are known as

• A) Unit investment trust.
• B) Balanced funds.
• C) Contractual plans.
• D) Income funds.
• E) Flexible funds.

---

Definitions:

Portfolio Standard Deviation

A statistical measure of the volatility of returns from a portfolio of assets, indicating the degree of investment risk.

Covariances

A measure that indicates the extent to which two variables change together, determining the degree of their correlation.

Expected Return

The weighted average of all possible returns for an investment, with weights being the probabilities of each outcome.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, indicating how much returns can deviate from the average return.