Which Type of Mutual Fund Consists of Both Stocks and Bonds

question 105

Multiple Choice

Which type of mutual fund consists of both stocks and bonds with a combined objective of current income and long-term capital gains?

• A) equity-income
• B) balanced
• C) value
• D) bond

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Definitions:

Equity

The owners' stake in a company, represented by the amount of capital contributed plus any profits or minus any losses.

Debt

Debt represents money borrowed that must be repaid, typically with interest, by the borrower to the lender.

CAPM Beta

CAPM Beta is a measure used in the Capital Asset Pricing Model to determine the volatility or systemic risk of an asset in relation to the market as a whole.

Expected Return

Expected return is the predicted amount of profit or loss an investment is anticipated to generate over a specific period.