(Consider This) According to critics, growth in the popularity of mutual funds has
A)significantly increased market risk for investors.
B)created more macroeconomic instability.
C)led corporate management and fund managers to focus more on short-run share prices than long-run investor returns.
D)discouraged average citizens from investing in stock and bond markets.

Question

Quizplus · Accepted Answer

Critics argue that the popularity of mutual funds has led to a focus on short-term share prices because fund managers are often evaluated based on short-term performance, which can pressure corporate management to prioritize immediate gains over long-term stability and growth.

(Consider This) According to Critics, Growth in the Popularity of Mutual