Asked by

Chris Stansberry
on Dec 08, 2024

verifed

Verified

Which of the following is true regarding equity mutual funds? I) They invest primarily in stock.II) They may hold fixed-income securities, as well as stock.III) Most hold money market securities, as well as stock.IV) Two types of equity funds are income funds and growth funds.

A) I and IV
B) I, III, and IV
C) I, II, and IV
D) I, II, and III
E) I, II, III, and IV

Equity Mutual Funds

Investment funds that pool money from various investors to purchase a diversified portfolio of stocks.

Fixed-Income Securities

Investments that provide regular income payments, such as bonds or treasury bills, with predetermined interest rates.

Money Market Securities

These are short-term debt instruments, typically with maturities of less than one year, used by governments, financial institutions, and corporations to finance their short-term cash needs.

  • Comprehend the fundamental architecture and varieties of investment instruments, such as mutual funds, closed-end funds, and Real Estate Investment Trusts (REITs).
  • Understand the variety and objectives of different types of mutual funds, such as money market, bond, stock, and hybrid funds.
verifed

Verified Answer

AB
april bautistaDec 11, 2024
Final Answer:
Get Full Answer