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:

Solomon Asch

A psychologist known for his research on conformity, including his famous experiment demonstrating how group pressure can influence an individual to conform.

Conformity

Adjusting one's behavior or thinking to coincide with a group standard.

Energy Policy

Plans and actions taken by a government or organization regarding the production, distribution, and consumption of energy.

Practical Joke

A trick played on someone in order to make them look foolish or to amuse others, often involving a physical or visual deception.