It Is Claimed That Mutual Funds Have Two Advantages

question 151

Multiple Choice

It is claimed that mutual funds have two advantages.The first is that mutual funds allow people with small amounts of money to diversify.The second is that mutual funds provide the skills of professional money managers who buy stocks they believe will be the most profitable and thereby increase the return that mutual fund depositors earn on their savings.

• A)Economists strongly agree with both claims.
• B)Economists are skeptical of both claims.
• C)Economists are skeptical of the first claim,but strongly agree with the second.
• D)Economists strongly agree with the first claim,but are skeptical of the second.

Analyze behavior and decision-making processes through the concept of self-regulation.

Describe how personal constructs theory applies to individual experiences and behavior changes.

Understand the basic concept and purpose of one-way ANOVA.

Identify the required conditions for conducting a one-way ANOVA.

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Definitions:

Operating Activities

Operating Activities refer to the primary revenue-generating activities of a company, such as sales and service provision, and their related expenditures.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption or loss of value over time.

Indirect Method

A cash flow statement approach that adjusts net income for non-cash transactions and changes in working capital to calculate cash flow from operations.