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Which of the Following Describes a Difference Between a Unit

Question 106

Multiple Choice

Which of the following describes a difference between a unit investment trust (UIT) and a mutual fund?


A) UITs have a fixed number of shares; mutual funds do not.
B) UITs are not required to distribute dividends and capital gains to their shareholders as mutual funds must.
C) UITs must hold non-diversified portfolios; mutual funds may be either non-diversified or diversified.
D) All of the above describe differences between a UIT and a mutual fund.

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