Which of the Following Statements About Mutual Funds Is Correct

question 102

Multiple Choice

Which of the following statements about mutual funds is correct?

• A)A mutual fund is a financial intermediary.
• B)A mutual fund acquires its funds primarily by selling shares to the public.
• C)People who buy shares from a mutual fund accept all of the risk and return associated with the mutual fund's portfolio.
• D)All of the above are correct.

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Definitions:

Gini Index

A statistical measure of income inequality within a population, ranging from 0 to 1, where 0 represents perfect equality and 1 represents maximum inequality.

Income Inequality

The unequal distribution of income within a population, leading to gaps between the wealthiest and poorest individuals.

Social Inequality

The existence of unequal opportunities and rewards for different social positions or statuses within a group or society.

Industrialization

The process of transforming economies from primarily agricultural to one based on the manufacturing of goods, characterized by the use of industrial technology and mass production methods.