Which of the Following Are Reasons for Purchasing a Mutual

question 40

Multiple Choice

Which of the following are reasons for purchasing a mutual fund?

• A) Professional management
• B) Tax reduction
• C) Diversification
• D) A and C
• E) B and C

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Definitions:

Discharge

The flow rate of water from a given source, such as a river or aquifer, typically measured in volume per unit time.

Low-Gradient Stream

A stream with a gentle slope that typically has slower water velocity and can form wide meanders, floodplains, and deposits of sediments along its course.

Erosion

the process by which natural forces, like water or wind, remove soil, rock, or dissolved material from one location and transport it to another.

Stream Confined

Refers to a watercourse that flows within narrow, limited boundaries, usually within a canyon or a gorge.