By Purchasing Shares in a Mutual Fund That Holds a Portfolio

question 26

Multiple Choice

By purchasing shares in a mutual fund that holds a portfolio of stocks,a person can

• A)benefit from fundamental analysis,since the mutual fund requires its shareholders to perform fundamental analysis on their own.
• B)benefit from fundamental analysis,since the mutual fund hires one or more individuals to perform fundamental analysis for the fund.
• C)eliminate market risk.
• D)reduce the standard deviation of his or her portfolio to zero.

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Definitions:

Federal Government

The central authority of the United States, composed of the legislative, executive, and judicial branches, responsible for governing the country at a national level.

African-Americans

Citizens of the United States with total or partial ancestry from any of the black racial groups of Africa.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s, designed to help the country recover from the Great Depression.

Marian Anderson

A celebrated American contralto, renowned for her extraordinary vocal range and versatility, as well as her groundbreaking role as an African American artist in the mid-20th century.