Which of the Following Accurately Describe Reasons for Investing in Mutual

question 43

Multiple Choice

Which of the following accurately describe reasons for investing in mutual funds?
I. to effectively control the timing of capital gains for tax purposes
II. to achieve portfolio diversification at a reasonable cost
III. to invest in unfamiliar sectors or geographic regions
IV. to outperform the market

• A) I and IV only
• B) II and III only
• C) I, II and III only
• D) I, II, III and IV

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Definitions:

Empathetic

Having the ability to understand and share the feelings of another person, showing empathy.

Facial Expressions

The movements of the face that convey emotional states, intentions, or social communications.

Fearful Body Posture

A fearful body posture is a physical stance or expression adopted by an individual or animal indicating fear, anxiety, or preparation for defensive actions.

Genuine Smile

A spontaneous expression of happiness or pleasure, typically involving both the mouth and eyes, indicating true enjoyment.