Money market mutual funds are sometimes added in a portfolio to
A) reduce the duration
B) increase the duration
C) move from an income objective to a growth in income objective
D) decrease the short-term tax consequences

Question

Quizplus · Accepted Answer

Money market mutual funds are typically used to reduce the duration of a portfolio because they invest in short-term, low-risk securities, which have lower duration compared to longer-term investments.

Money Market Mutual Funds Are Sometimes Added in a Portfolio