Select the correct statements about balanced funds.

1. Expected returns on balanced funds should be higher than the return on money market funds.

2. The balance between defensive and aggressive holdings is rarely 50-50.

3. The main objective is to provide a balanced mixture of safety and capital appreciation.

4. Balanced funds are equally balanced between bonds, preferreds and equity. a.

1 and 2 b.

1 and 3 c.

2 and 4 d.

3 and 4