A major benefit of investing in mutual funds is:
A)reducing the Beta of the investment portfolio.
B)increasing the Beta of the investment portfolio.
C)low cost reduction of exposure to unique risks.
D)the elimination of market risk.

Question

Quizplus · Accepted Answer

Mutual funds allow investors to pool their money together to invest in a diversified portfolio of securities, which can help reduce exposure to unique risks while keeping costs low. However, mutual funds do not eliminate market risk and may not necessarily increase or decrease the Beta of an investment portfolio.

A Major Benefit of Investing in Mutual Funds Is