Mutual funds spread the risk of investing across many securities.

Name: Mutual funds spread the risk of investing across many securities.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

A mutual fund pools individual investor dollars and invests them in large numbers of well diversified securities.Because of the large numbers of people investing in any one mutual fund,the funds can afford to invest in hundreds (if not thousands)of securities at any one time,minimizing the risks created by any single security that does not do well.

Mutual Funds Spread the Risk of Investing Across Many Securities