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Victor Buys Mutual Funds That Allow Him to Buy Smaller

Question 37

Multiple Choice

Victor buys mutual funds that allow him to buy smaller stakes in more companies. Which of the following statements is true of his approach to investment?


A) It is much safer than buying only bonds or savings accounts.
B) It increases Victor's risks by spreading investment capital across a range of possibilities.
C) It helps Victor harness overall market growth rather than the individual growth of any given company.
D) It is the same as investing in exchange-traded funds

Correct Answer:

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