Mutual fund investors are primarily exposed to ________ and ________ risks.

Question

Quizplus · Accepted Answer

Mutual fund investors are primarily exposed to market risk, which is the risk of the value of the securities in the fund declining due to market conditions, and inflation risk, which is the risk that the purchasing power of the fund's returns will decrease over time due to inflation. Option A is incorrect as business risk is not a significant factor for mutual fund investors as they are diversified across various companies. Option C is incorrect as mutual fund investors are not directly exposed to individual companies' financial risks. Option D is incorrect as inflation risk is a more significant concern than business risk for mutual fund investors.

Mutual Fund Investors Are Primarily Exposed to ________ and ________

Mutual Fund Investors Are Primarily Exposed to and