1. Which of the following is true regarding equity mutual funds?

I) They invest primarily in stock.

II) Most hold some money market securities in addition to stock.

III) Two common types of equity funds are income funds and growth funds.

IV) Growth funds are typically riskier and are more sensitive to changes in economic conditions than do income funds.

1. I and IV
2. I, II, and IV
3. I, II, and III
4. I, II, III, and IV
5. None of the above