Ask Question
BusinessBusiness
14 August, 11:13

Which of the following is considered a "diversified" investment?

A. Mutual Fund

B. Index Fund

C. Both of these

D. Neither of these

+5
Answers (1)
  1. 14 August, 14:02
    0
    C. Both of these (index and mutual funds)

    Explanation:

    Index funds and mutual funds are examples of diversified investments. In other words, there are portfolio investments. They combine stocks of different companies to form one unit of an investment basket. By purchasing one unit of a diversified portfolio, the investor buys a basket of shares with a single transaction.

    Mutual funds are actively managed, whereas Index funds are passively managed. It means mutual funds have a fund manager who manually selects the stocks that will go into the portfolio. An index fund is a portfolio of securities designed to track the price movement of a financial market index. Index funds are less expensive investments than mutual funds because they do not require the services of a professional fund manager.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is considered a "diversified" investment? A. Mutual Fund B. Index Fund C. Both of these D. Neither of these ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Which of the following describes the difference between "scarcity" and "shortage"? A. In the economic sense, almost everything is scarce.
Answers (1)
Currently, interest rate earnings in the US are taxed at the same rate of the income tax rate. Suppose the tax on interest rate earnings is removed.
Answers (1)
1. The freedom of working for yourself is necessarily limited by A. your own skills and abilities. B. your local competitors. C. what your manager tells you to do. D. the needs of your family and friends.
Answers (1)
g. Which inventory method would you recommend for reporting for income tax purposes to minimize taxable income? Why? 3. The company is operating in an inflationary environment.
Answers (1)
Given the following information, calculate the total amount of annual operating expenses for this income-producing property.
Answers (1)
New Questions in Business
During an economic downturn when businesses must cut expenses, managers must be creative in motivating employees.
Answers (1)
Angela's monthly disposable income is $1 comma 973. She has monthly expenses of $1 comma 755 (including recreational expenses of $241 ) and net cash flow of $218 per month. Angela makes a budget based on her personal cash flow statement.
Answers (1)
Locally manufactured Bubbles is a popular brand of detergent in Germany. However, with the entry of a foreign multinational into the market, Bubbles begins to lose market share.
Answers (1)
According to a summary of the payroll of Scotland Company, total salaries were $500,000. Assume that social security taxes are payable at a 6% rate and Medicare taxes are payable at a 1.5% rate with no maximum earnings.
No Answers
The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 652,000 Direct labor cost $ 81,000 Raw material purchases $ 133,000 Selling expenses $ 102,000 Administrative expenses $ 43,000
Answers (1)
Home » Business » Which of the following is considered a "diversified" investment? A. Mutual Fund B. Index Fund C. Both of these D. Neither of these
Sign Up Forgot Password?