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:

Monteverde Cloud Forest

A unique and biodiverse forest in Costa Rica known for its high humidity and the frequent, low-level cloud cover at the canopy level.

Preservation

The process of maintaining or protecting something in its original or existing state, from environmental conditions or human activities.

Nitrogen Oxides

Refers to a group of gases composed of nitrogen and oxygen, such as NO and NO2, which are significant environmental pollutants.

Combustion

A chemical reaction that occurs when a substance reacts with oxygen to release energy in the form of heat and light, often resulting in fire.