Why might a mutual fund be a better investment than individual stocks and bonds? A. A mutual fund guarantees dividends. B. Stocks are more expensive. C. Risk is diversified with a mutual fund. D. Bonds carry less risk. E. Stockholders can pick the stocks for their mutual fund.

Answers

Answer 1

Answer:

A mutual fund might be better investment than individual stocks and bonds because:

C) Risk is diversified with a mutual fund

Explanation:

Mutual funds is an investment in which money is brought together from a group of investors, which are invested into stock, bonds, money market account, and much more.

We know the famous idiom "Don't put all your eggs in one basket", well mutual funds do that for you. When you invest, you try your best to reduce the risk, and most important way to do it is through diversification. Mutual funds offer investors a great way to quickly diversify their holdings. Unlike stocks and bonds, investors can keep a small amount in one or more funds and have access to a variety of investment options.

Answer 2

Answer: C

Explanation:

Related Questions

A main reason to improve product quality is that doing so can achieve which of the following?

A. Deepening the product mix

B. Extending the product life cycle

C. Lowering the cost to make the product

D. Creating product line extensions

Answers

Answer:

B. Extending the product life cycle.

Explanation:

The main reason to improve product quality is that doing so can achieve Extending the product life cycle. Thus the correct option is B.

What is Product quality?

Product quality is a key determiner to know about the satisfaction of customers. It helps businesses to evaluate whether the product is successful in meeting the requirements of customers.

When the product is not performing well its life cycle gets declined due to poor performance factors so the main reason to improve the product quality is to extend the product life cycle so that it can serve in the market for a longer duration of time.

The quality and price of the product are two main factors that help to give rise to its lifecycle by developing bettwer customer satisfaction with the goods and services.

Therefore, option B is appropriate.

Learn more about the product life cycle, here:

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