A professionally-managed portfolio of assets intended to provide income to retirees is called:
A) a mutual fund.
B) a stock.
C) a derivative.
D) investing by proxy.

Question

Quizplus · Accepted Answer

A mutual fund is a collection of stocks, bonds, and other securities managed by professional portfolio managers. They are intended to generate income for investors, including retirees, through dividends and distributions. Mutual funds provide diversification, liquidity, and convenience for investors who don't have the time, knowledge, or resources to build and manage their own portfolios. Stocks and derivatives can be risky and volatile, while investing by proxy is not a commonly used term in finance. Therefore, the best choice for a professionally-managed portfolio of assets intended to provide income to retirees is a mutual fund.

A Professionally-Managed Portfolio of Assets Intended to Provide Income to Retirees