How do mutual funds address the issue of high stock prices for small investors? Option: Mutual funds allow investors to purchase fractions of shares, making expensive stocks accessible, Mutual funds provide loans to investors to purchase expensive stocks, Mutual funds only invest in low-priced stocks to cater to small investors, Mutual funds negotiate lower stock prices for their investors

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How do mutual funds address the issue of high stock prices for small investors?

Mutual funds allow investors to purchase fractions of shares, making expensive stocks accessible

Mutual funds provide loans to investors to purchase expensive stocks

Mutual funds only invest in low-priced stocks to cater to small investors

Mutual funds negotiate lower stock prices for their investors

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Why are Mutual Funds considered cost-effective?

"They benefit from economies of scale, reducing transaction costs per unit"

"They offer higher returns compared to other investment options"

"They operate with minimal overhead costs"

"They are exempt from government regulations"

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What is the primary function of a mutual fund?

To provide loans to small businesses

To pool money from investors and invest it in various financial instruments

To offer high-interest savings accounts

To facilitate direct stock trading for individual investors

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What is a significant advantage of Mutual Funds for investors with limited financial expertise?

"Elimination of the need for diversification"

"Guaranteed profits regardless of market conditions"

"Access to high-risk, high-reward investments"

"Professional management by experienced fund managers"

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What is a key advantage of mutual funds for investors who are new to the stock market?

"They offer guaranteed returns"

"They provide access to diversified portfolios"

"They eliminate all investment risk"

"They allow investors to avoid paying taxes"

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What is a potential advantage of investing in mutual funds over direct equity for someone with limited time?

Mutual funds handle investment decisions, relieving the individual of constant monitoring

Mutual funds offer lower fees and expenses compared to direct equity trading

Mutual funds guarantee higher returns than direct equity investments

Mutual funds allow for immediate withdrawal of funds without any penalties