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Which of the Following Statements About Balanced Funds Is True

Question 31

Multiple Choice

Which of the following statements about balanced funds is true?


A) Balanced funds are most suitable for investors who can tolerate risk and price volatility.
B) Balanced funds put most of their money into equities.
C) Balanced funds are viewed by many high-income investors as a type of tax-sheltered investment.
D) Balanced funds generally keep 30% to 40% of their portfolios in bonds.
E) Balanced funds look for stocks with relatively low price/earnings (P/E) ratios, high dividend yields, and moderate amounts of financial leverage.

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