Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 3LO
Related questions
Question
![Mutual funds permit
those who desire to save
to pool their funds
together for the purpose
of purchasing financial
instruments with large
denominations. As a
result, the average fund
management costs are
lower than they would be
if individual savers tried to
manage their funds
individually. This is an
example of](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c8af23d-7380-4514-9f4c-9e6fde0d91fe%2F7f356384-104b-4a17-9524-4e4786e9ff25%2Fnej6x3r_processed.png&w=3840&q=75)
Transcribed Image Text:Mutual funds permit
those who desire to save
to pool their funds
together for the purpose
of purchasing financial
instruments with large
denominations. As a
result, the average fund
management costs are
lower than they would be
if individual savers tried to
manage their funds
individually. This is an
example of
![OA. moral hazard.
B. adverse selection.
OC. asymmetric information.
D. economies of scale.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c8af23d-7380-4514-9f4c-9e6fde0d91fe%2F7f356384-104b-4a17-9524-4e4786e9ff25%2F0x6ghy9_processed.png&w=3840&q=75)
Transcribed Image Text:OA. moral hazard.
B. adverse selection.
OC. asymmetric information.
D. economies of scale.
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