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Which of the Following Statements Is Incorrect

Question 59

Multiple Choice

Which of the following statements is incorrect?


A) Commercial paper is the largest component in money market funds.
B) From an investor's perspective, money market funds usually have a low level of credit risk.
C) If managers are unable to change the asset composition of money market funds, they can still influence performance by changing the maturities of the securities in which they invest.
D) If mutual fund managers expect interest rates to decrease in the future, they should use funds generated from maturing securities to purchase new securities with shorter maturities.

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