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Question 1a (10 points) Mutual funds are beneficial because....(choose all that apply) a They increase the buying power of any individual b They only allow
Question 1a (10 points) Mutual funds are beneficial because....(choose all that apply) a They increase the buying power of any individual b They only allow large companies to invest and exclude individual investors c They only invest in a single stock or bond d They diversify investments by investing in a large number of stocks and bonds e They require a low amount of money to start, so are accessible to regular people Question 1b (10 points) As a mutual fund investor, you can make money through... a Dividend distributions (underlying stock dividends + bond coupons) b Capital gains distributions (from buying and selling underlying stocks and bonds) c Fund value increase - by buying at one price and selling when the fund value increases d All of the above
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