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By Purchasing Shares in a Mutual Fund That Holds a Portfolio

Question 26

Multiple Choice

By purchasing shares in a mutual fund that holds a portfolio of stocks,a person can


A) benefit from fundamental analysis,since the mutual fund requires its shareholders to perform fundamental analysis on their own.
B) benefit from fundamental analysis,since the mutual fund hires one or more individuals to perform fundamental analysis for the fund.
C) eliminate market risk.
D) reduce the standard deviation of his or her portfolio to zero.

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