Question

Which of the following is not an advantage of mutual fund​ investing? A. professional management B....

Which of the following is not an advantage of mutual fund​ investing? A. professional management B. diversification C. guaranteed return D. liquidity

Homework Answers

Answer #1

MUTUAL FUND INVESTMENT DOES NOT PROVIDE GUARANTEED RETURN AS THEY ARE SUBJECT TO MARKET.

IF MARKET FALLS, RETURN MAY BE EVEN NEGATIVE.

OTHER OPTIONS ARE ALL THE ADVANTAGES:

MUTUAL FUND IS HANDLED BY PROFESSIONAL PEOPLE. THEY HAVE KNOWLEDGE OF THEIR FIELD.

MUTUAL FUNDS PROVIDE DIVERSIFICATION SO THAT RISK CAN BE LOWERED AND RETURN CAN BE MAXIMIZED. MUTUAL FUNDS CAN BE SOLD IN OPEN MARKET, SO ENOUGH LIQUIDITY IS THERE.  

ANSWER : C : GUARANTEED RETURN. (Thumbs up please)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which of the following is not an advantage of a mutual fund? A) Cheaper transactions costs...
Which of the following is not an advantage of a mutual fund? A) Cheaper transactions costs B) Diversification C) Monitoring activities at lower costs D) No default risk E) All of these choices are correct
One disadvantage of investing through mutual funds is A. that they provide time savings. B. that...
One disadvantage of investing through mutual funds is A. that they provide time savings. B. that there are more than 8,100 to choose from. C. the professional management. D. too much diversification.
Which benefit of investing in mutual funds pertains to the ability to sell your shares at...
Which benefit of investing in mutual funds pertains to the ability to sell your shares at market price due to a large demand for mutual fund assets? Liquidity Withdrawal option Dividend reinvestment Diversification
What do you think the advantages of investing in mutual funds? Are there any disadvantages? It...
What do you think the advantages of investing in mutual funds? Are there any disadvantages? It is estimated that by the year 2014, household financial resources invested in mutual funds had reached more than 15 trillion dollars. Why do you think they’ve become so popular? Since professional management and diversification are characteristics of mutual funds, must investors still evaluate a mutual fund? Why or why not?
Mutual Funds offer the small investor all of the following, EXCEPT: a) Diversification b) Access to...
Mutual Funds offer the small investor all of the following, EXCEPT: a) Diversification b) Access to Mass Markets c) Ability to Choose Individual Securities d) Professional Management
An investor is considering investing into a mutual fund. For a) and b), alculate the amount...
An investor is considering investing into a mutual fund. For a) and b), alculate the amount available after 20 years assuming that the investor reinvests all distributions. All funds considered generate a 10% annual return throughout the period and the amount invested annually is always $3000. a) The first fund charges no fees on entry or exit or on an annual basis. b) The second fund charges a 5% load fee so that only $2850 is actually invested in the...
37. Which of the following is not a private equity investing strategy? A. venture capital B....
37. Which of the following is not a private equity investing strategy? A. venture capital B. mezzanine financing C. distressed debt investing in start-up firms D. leveraged buyouts 38. Venture capitalists are always looking for viable business to invest in. In reviewing all the issues affecting profitability and realization of return, which of the following issues would be the most important? A. Professional background of the management team B. Key staff are “locked in” with non-computer algorithms C. Rate of...
Which of the following is usually not insured? a. a savings account b. a mutual fund...
Which of the following is usually not insured? a. a savings account b. a mutual fund c. a CD d. a US savings bond
Which of the following are advantages of investing in mutual funds? low initial investment requirement. ability...
Which of the following are advantages of investing in mutual funds? low initial investment requirement. ability to manage all the individual securities held within the mutual fund the ability to purchase a fund at a premium to NAV none of the above
. A mutual fund is owned by the investment advisory firm which manages the fund. A)...
. A mutual fund is owned by the investment advisory firm which manages the fund. A) True B) False 2. A contingent deferred sales charge is a backend load which is imposed when shares of some mutual funds are sold. A) True B) False Mutual funds are only permitted to invest in U.S. securities. A) True B) False 4. Each prospective investor in a mutual fund must be supplied with a(n): A) trust certificate. B) stock certificate. C) tax report....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT