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:

Tardive Dyskinesia

A neurological syndrome characterized by repetitive, involuntary, purposeless movements caused by long-term use of certain psychiatric drugs.

Second Generation Antipsychotics

A class of medications used to treat psychiatric conditions; known for their lower risk of causing motor side effects compared to first-generation antipsychotics.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Dopamine

A neurotransmitter involved in many functions, including mood, motivation, reward, and the regulation of movement.