Donel is investing in a mutual fund that really is not as diversified as other funds.It may enjoy good capital gains but is also much riskier when it comes to unsystematic risk.This fund is called a(n)________ fund.
A)growth-and-income
B)sector
C)life cycle
D)asset allocation
E)bond

Question

Quizplus · Accepted Answer

A sector fund concentrates on stocks in a particular industry or sector, making it less diversified than other funds. It may have good returns, but it also carries a higher risk of unsystematic risk.

Donel Is Investing in a Mutual Fund That Really Is