For Your Investment Program,you Have Occasionally Been Holding a Few

question 95

Multiple Choice

For your investment program,you have occasionally been holding a few stocks that you purchased from various brokers.Based on this,which advantages of mutual funds would be appealing to you?

• A)Diversification
• B)Professional management
• C)Avoidance of bad brokers
• D)only A and C
• E)A,B,and C

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Definitions:

Price-earnings Ratio

A financial metric comparing a company's market price per share to its earnings per share, indicating the value given by the market for each dollar of earnings.

Price-earnings Ratio

The price-earnings ratio, or P/E ratio, measures a company's current share price relative to its per-share earnings, indicating the market's valuation of a company's growth potential.

Earnings per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Cumulative

Describes something that increases in quantity or effect over time, often in reference to data or statistics that are added together.