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Mutual Funds May Be Affiliated with an Underwriter

Question 8

Multiple Choice

Mutual funds may be affiliated with an underwriter. This means


A) the underwriter has an exclusive right to distribute shares.
B) the underwriter selects the securities in the portfolio.
C) there is no risk to the issuer of the mutual fund.
D) there is no risk to the investor of the mutual fund.

Correct Answer:

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