Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds: Select one: O a. always earn a higher rate of return than an investor could obtain with a single stock or bond. Ob. allow investors with relatively small amounts of money to diversify their investment portfolios. C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock. d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.

Ceteris paribus, the primary advantage of investing in mutual funds over individual stocks or bonds is that mutual funds: Select one: O a. always earn a higher rate of return than an investor could obtain with a single stock or bond. Ob. allow investors with relatively small amounts of money to diversify their investment portfolios. C. offer investors less inflation risk, and thus a higher return, than an investor could obtain with a single stock. d. offer investors less market risk, and thus a higher return, than an investor could obtain with a single stock.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter9: The Basic Tools Of Finance

Section: Chapter Questions

Problem 6CQQ

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