Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds: Select one: O a. always earn a higher rate of return than an investor could obtain with a single stock or bond. Ob. allow investors with relatively small amounts of money to diversify their investment portfolios. C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock. d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.
Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds: Select one: O a. always earn a higher rate of return than an investor could obtain with a single stock or bond. Ob. allow investors with relatively small amounts of money to diversify their investment portfolios. C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock. d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 1SCQ: Answer these three questions about early-stage corporate finance: Why do very small companies tend...
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![Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds:
Select one:
O a. always earn a higher rate of return than an investor could obtain with a single stock or bond.
Ob. allow investors with relatively small amounts of money to diversify their investment portfolios.
C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock.
O d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb69650b-d0a4-4be7-b4fd-c011f3abe683%2F090ebdaf-a3b3-4c5d-874b-79f3804170c1%2F7nhor42_processed.png&w=3840&q=75)
Transcribed Image Text:Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds:
Select one:
O a. always earn a higher rate of return than an investor could obtain with a single stock or bond.
Ob. allow investors with relatively small amounts of money to diversify their investment portfolios.
C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock.
O d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.
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