Multiple Choice
A mutual fund is a good way for an investor to diversify in investment because:
A) a mutual fund consists of a large number of stocks so the cost of buying all of them at the same time is lower.
B) when the prices of risky stocks go up, the prices of less risky stocks must go down.
C) not all stock prices move up or down at the same time.
D) there are many buyers of a mutual fund so that the risk is spread across all the buyers.
Correct Answer:
Verified
Correct Answer:
Verified
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