What is the primary advantage of owning mutual funds over individual securities? Mutual funds offer free checking. Fees of actively managed funds are generally quite low. Managers of mutual funds are much more likely to pick winning stocks than are you. O Pooling of money from many investors enables the fund to buy many different securities and ac honofits of diversification
What is the primary advantage of owning mutual funds over individual securities? Mutual funds offer free checking. Fees of actively managed funds are generally quite low. Managers of mutual funds are much more likely to pick winning stocks than are you. O Pooling of money from many investors enables the fund to buy many different securities and ac honofits of diversification
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 3MCQ
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![QUESTION 1
What is the primary advantage of owning mutual funds over individual securities?
Mutual funds offer free checking.
Fees of actively managed funds are generally quite low.
Managers of mutual funds are much more likely to pick winning stocks than are you.
Pooling of money from many investors enables the fund to buy many different securities and achieve the
benefits of diversification.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b8f544a-0b32-4227-8ada-85cc2af17264%2F19d50ac3-abbe-4e5e-94e3-9f25ec0f9117%2Fgtf6tj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 1
What is the primary advantage of owning mutual funds over individual securities?
Mutual funds offer free checking.
Fees of actively managed funds are generally quite low.
Managers of mutual funds are much more likely to pick winning stocks than are you.
Pooling of money from many investors enables the fund to buy many different securities and achieve the
benefits of diversification.
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