A Mutual Fund Is a Good Way for an Investor

question 241

Multiple Choice

A mutual fund is a good way for an investor to diversify in investment because:

• A) a mutual fund consists of a large number of stocks so the cost of buying all of them at the same time is lower.
• B) when the prices of risky stocks go up, the prices of less risky stocks must go down.
• C) not all stock prices move up or down at the same time.
• D) there are many buyers of a mutual fund so that the risk is spread across all the buyers.

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Definitions:

Trendlines

Graphical representations in data analysis that show the general direction or trend of data points over a period of time.

Formula Auditing Group

A collection of tools in spreadsheet applications that assist users in examining and troubleshooting the formulas in a worksheet.

Range B1:B20

A specific sequence of cells in a column, from B1 through B20, in spreadsheet software.

Counta

A function in spreadsheet software that counts the number of cells in a range that are not empty.