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Elmer Fund selects investment to track the S&P500 index. Which of the following statements regarding Elmer Fund is correct? 1: Elmer Fund may appeal to

Elmer Fund selects investment to track the S&P500 index. Which of the following statements regarding Elmer Fund is correct?

1: Elmer Fund may appeal to investors who want to minimize fees and believe that market is efficient

2: adding investment-grade bonds to Elmer Fund will decrease the portfolios short-term risk

		Only Statement 1
		Only Statement 2
		Both Statements 1 and 2
		Neither Statement 1 or 2

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