Which of the Following Statements Is TRUE

question 28

Multiple Choice

Which of the following statements is TRUE?
I. A mutual fund pools money from many different investors and uses that money to invest in many different firms.
II. Mutual funds that are run by managers who try to pick the best performing stocks usually outperform the S&P 500.
III. Passive mutual funds do not try to select winning stocks; they mimic broader markets like the S&P 500.

• A) I only
• B) I and II only
• C) I and III only
• D) II and III only

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Definitions:

Identical Twins

Twins who develop from a single fertilized egg that splits and forms two embryos, sharing 100% of their genes.

Environmental Influences

The impacts of the surrounding environment, including social, physical, and cultural factors, on an individual's behavior and development.

Fraternal Twins

Also known as dizygotic twins, are siblings that develop from two separate eggs fertilized by two different sperm cells, but are born at the same time.

Epigenetic Marks

Adjustments in DNA and histone proteins that play a role in gene expression, without any alteration to the DNA sequence.