The majority of mutual fund assets are in the form of
A) common stocks.
B) preferred stocks.
C) U.S. government bonds.
D) municipal bonds.

Question

Quizplus · Accepted Answer

The majority of mutual fund assets are invested in common stocks as they offer the potential for higher returns but also carry higher risks. Mutual funds also invest in bonds, money market instruments, and other securities, but common stocks are the most significant investment for most mutual funds. Preferred stocks, U.S. government bonds, and municipal bonds, while common investments for mutual funds, do not make up the majority of assets held in mutual funds.

The Majority of Mutual Fund Assets Are in the Form