The primary advantage of mutual funds is that they
A)always make a return that "beats the market."
B)allow people with small amounts of money to diversify.
C)provide customers with a medium of exchange.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Mutual funds allow people with small amounts of money to diversify their investments, which can be difficult to achieve when investing on their own. While mutual funds may sometimes beat the market, this is not guaranteed and should not be considered as the primary advantage of these funds. Mutual funds also do not provide customers with a medium of exchange.

The Primary Advantage of Mutual Funds Is That They