Who Accepts All of the Risk Associated with a Mutual

question 23

Multiple Choice

Who accepts all of the risk associated with a mutual fund's portfolio of stocks and/or bonds?

• A)the fund's managers
• B)the fund's shareholders
• C)the federal government
• D)the corporations that originally issued the stocks and/or bonds held by the fund

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Definitions:

Planning

The process of creating strategies and setting objectives to guide an organization or individual toward achieving specific goals.

Directing

The managerial process of influencing people's behavior to achieve organizational goals.

Estimated Manufacturing Costs

The projected or forecasted costs associated with the production of goods, including estimates for materials, labor, and overhead before the actual production takes place.

Production Levels

The amount of output or goods a company produces within a specific period, indicating the scale of its production operations.