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A Benefit of Mutual Funds That Mainly Buy Stocks and Hold

Question 23

Multiple Choice

A benefit of mutual funds that mainly buy stocks and hold them is that


A) the price of the stocks they hold always appreciate.
B) dividend payments on such stocks are not taxed.
C) they help avoid taxes as the capital gains on these stocks are implicit.
D) ​they promise annual returns of more than 50% of the principal amount.

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