Which One of the Following Statements Is False

Multiple Choice

Which one of the following statements is false?

A) Investors purchase mutual funds for diversification.
B) Investors purchase mutual funds because of their professional management.
C) Investors who purchase mutual funds are guaranteed a higher rate of return than if they were to purchase comparable stocks and bonds directly.
D) Professional fund managers work for an investment company.
E) Even the best portfolio managers sometimes make mistakes.