Which of the following is NOT a way in which mutual funds generate returns for their shareholders?
A)They can pass on any earned income as dividend payments to shareholders.
B)They distribute the capital gains resulting from the sale of securities within the fund.
C)The mutual fund price appreciates.
D)All of these are ways in which a mutual fund generates returns to its shareholders.

Question

Which of the following is  NOT  a way in which mutual funds generate returns for their shareholders?
A)They can pass on any earned income as dividend payments to shareholders.
B)They distribute the capital gains resulting from the sale of securities within the fund.
C)The mutual fund price appreciates.
D)All of these are ways in which a mutual fund generates returns to its shareholders.

Quizplus · Accepted Answer

All the options listed (A, B, and C) are indeed ways in which mutual funds generate returns for their shareholders. Mutual funds can distribute earned income as dividends, distribute capital gains from the sale of securities, and the price of the mutual fund itself can appreciate, all of which benefit the shareholders.

Which of the Following Is NOT a Way in Which