Investment in a professionally managed pool of assets such as a mutual fund is an example of
A) direct investment.
B) indirect investment.
C) derivative investment.
D) speculative investment.

Question

Quizplus · Accepted Answer

Investment in a mutual fund is an example of an indirect investment because investors do not directly own the underlying assets in the fund, but rather own shares in the fund itself. A direct investment would be buying and owning individual stocks or real estate. A derivative investment involves contracts based on the value of underlying assets, and a speculative investment involves taking risky positions in hopes of high returns.

Investment in a Professionally Managed Pool of Assets Such as a Mutual