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.

---

Definitions:

Power of Sale

A legal clause found in mortgages or deeds of trust that gives the lender the right to sell the property without court supervision if the borrower defaults.

Unregistered Mortgage

is a mortgage loan that has not been formally recorded with the appropriate government registry, potentially affecting its legal enforceability.

Registered Mortgage

A legal document that secures a loan with real estate, ensuring it is registered in official records.

Priority

The state of being considered more important or urgent than other matters or claims.