Question

What risk factors are associated with mutual fund investments?

a.

Only market risks

b.

Only investment risks

c.

Both market risks and investment risks

d.

Only liquidity risk

Posted under IC 89 Management Accounting

Answer: (c).Both market risks and investment risks Explanation:All mutual fund investments are subject to market risks and investment risks, including trade volumes, settlement risk, liquidity risk, default risk, and possible loss of capital.

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Q. What risk factors are associated with mutual fund investments?
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