The Difference Between Balanced Funds and Asset Allocation Funds Is

question 48

Multiple Choice

The difference between balanced funds and asset allocation funds is that ________.

• A) balanced funds invest in bonds while asset allocation funds do not
• B) asset allocation funds invest in bonds while balanced funds do not
• C) balanced funds have relatively stable proportions of stocks and bonds while the proportions may vary dramatically for asset allocation funds
• D) balanced funds make no capital gain distributions and asset allocation funds make both dividend and capital gain distributions

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Definitions:

Proposition

A formal statement put forth for consideration, often in logic or mathematics, that can be either true or false.

Form

In logic and philosophy, the structure or pattern that an argument or expression follows, abstracting away from the content.

Quantity

A property that exists in a range of magnitudes and can be measured or quantified.

Quantity

The amount or number of a material or immaterial entity that is considered as a unit or in a measurable amount.