Which of the following makes it possible for even a small investor to hold a diverse set of stocks and still keep the cost of purchasing additional stock holdings low?
A) A real world savings account.
B) An equity (stock) mutual fund.
C) A bond mutual fund.
D) A checking account at a local bank.

Question

Quizplus · Accepted Answer

An equity (stock) mutual fund pools money from many investors to purchase a diversified portfolio of stocks, allowing small investors to achieve diversification at a lower cost than purchasing individual stocks.

Which of the Following Makes It Possible for Even a Small