Which of the Following Is a True Statement About Mutual

question 90

Multiple Choice

Which of the following is a true statement about mutual funds?

• A)You get to choose what stocks the mutual fund invests your money in.
• B)A minimum investment is required.
• C)They are only invested in stocks.
• D)The value of shares are not reported in The Globe and Mail or on various websites.

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Definitions:

Net Present Value

This is a calculation that estimates the value of an investment adjusted for its time value of money, essentially determining the present value of its future cash flows minus the initial investment.

Fixed Assets

Tangible assets, such as buildings and machinery, used in operations and not intended for resale, providing long-term financial benefit.

Rights Offering

A financial mechanism by which existing shareholders are given the right to buy additional shares directly from the company, usually at a discount to the current market price.

Market Price

The price at which the market currently values the buying or selling of an asset or service.