Which of the following is not a benefit to an individual purchasing a mutual fund?
A) Reduced risk
B) Lower transactions costs
C) Free-riding
D) Diversification

Question

Quizplus · Accepted Answer

Free-riding is not a benefit to an individual purchasing a mutual fund. Free-riding refers to the practice of buying or selling securities based on information that has not yet been made public, which is illegal. The benefits of investing in mutual funds include reduced risk, lower transaction costs, and diversification.

Which of the Following Is Not a Benefit to an Individual