Which of the Following Statements About Mutual Funds Is Correct

question 16

Multiple Choice

Which of the following statements about mutual funds is correct?

• A)A mutual fund is not a financial intermediary.
• B)A disadvantage of buying mutual funds is a lack of diversification
• C)People who buy shares from a mutual fund are guaranteed a minimum return.
• D)On average index funds outperform managed funds.

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Definitions:

Frequency Distribution

A summary of data showing the number of observations (frequency) for each value or range of values.

B Grade

A classification often used in educational settings to denote a level of academic performance above average but below the highest level of excellence.

Frequency Distribution

A summary of data showing the number (frequency) of observations in each of various non-overlapping categories or bins.

Cumulative Percent

The percentage that represents the total number of cases or instances up to a certain threshold.