Which One of the Following Statements Is Correct Concerning the Mutual

question 86

Multiple Choice

Which one of the following statements is correct concerning the mutual fund cash ratio (MFCR) ?

• A)When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks.
• B)Low mutual fund cash is bullish because it means managers have been buying stocks.
• C)High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw funds, a bearish signal.
• D)A high MFCR is like high short interest in that it indicates pent up demand.