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Which of the Following Is an Advantage of Purchasing Mutual

Question 5

Multiple Choice

Which of the following is an advantage of purchasing mutual funds?


A) Spreading your investment over many securities may limit your chances for a large return.
B) There costs associated with mutual funds which are not accrues with individual securities.
C) A mutual fund allows for diversification without having to purchase numerous securities.
D) Professional money managers are better able to make security decisions than are individual investors.
E) The losses incurred from mutual funds are covered by the CIPF.

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