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17 April, 01:02

Choose the correct answer.

Why might a mutual fund be a better investment than individual stocks and bonds?

A - A mutual fund guarantees dividends.

B - Stocks are more expensive.

C - Risk is diversified with a mutual fund.

D - Bonds carry less risk.

E - Stockholders can pick the stocks for their mutual fund.

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Answers (1)
  1. 17 April, 02:42
    0
    The correct option is C. Mutual funds are more preferable to investors because they offer more diversification and conveniences at lower costs. In mutual fund, investors can pool their resources together to invest in diverse businesses. Investing in diverse portfolio diversifies the risks of investments.
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Home » Business » Choose the correct answer. Why might a mutual fund be a better investment than individual stocks and bonds? A - A mutual fund guarantees dividends. B - Stocks are more expensive. C - Risk is diversified with a mutual fund. D - Bonds carry less risk.
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