An Investor Adopts a Variable Ratio Policy of Investing in Both

question 79

Multiple Choice

An investor adopts a variable ratio policy of investing in both a high beta mutual fund and a money market fund. Money will be moved from the money market fund to the high beta fund

• A) when the high beta fund's value has declined.
• B) when the high beta fund's value has increased.
• C) on the same date each year.
• D) whenever accumulated interest in the money market fund exceeds a specified dollar amount.

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Definitions:

Palmitic Acid

A saturated fatty acid commonly found in animals and plants, used in the manufacture of soaps and cosmetics.

Oleic Acid

A monounsaturated fatty acid often found in various plants and animals, important for human health and used in cooking oils.

Ozone

A molecule composed of three oxygen atoms (O3), known for its role in absorbing ultraviolet radiation in the Earth's stratosphere.

Dimethyl Sulfide

A volatile organic compound with the formula (CH3)2S, known for its distinctive odor and produced naturally in the marine environment.