Stocks & Mutual Funds

Mutual funds allow investors to pool their money together to invest in a diversified portfolio of assets.

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• FALSE

All types of mutual funds have the same level of risk associated with them.

• TRUE

• FALSE

Bonds are generally considered riskier investments than stocks.

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• FALSE

Investing in mutual funds guarantees a positive return on investment.

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• FALSE

Stocks represent ownership in a company, while bonds represent a loan to a company or governments.

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• FALSE

Mutual funds are managed by professional fund managers who make investment decisions on behalf of the investors.

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• FALSE

The value of stocks can theoretically increase indefinitely, while bonds have a fixed upper limit on returns.

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• FALSE

All mutual funds charge high fees that significantly reduce investor returns.

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• FALSE

When interest rates rise, bond prices tend to fall.

• TRUE

• FALSE

Investors can completely eliminate all risks associated with investing in stocks and bonds through proper asset allocation.

• TRUE

• FALSE