Imagine that you are a manager of a mutual fund where you are held responsible to your shareholders. The shareholders are most concerned with the effectiveness of your decisions and thus you respond accordingly. This would be most evident in which of the following?
A) maximizing shareholder wealth with your investments
B) being first to purchase risky stocks
C) purchasing only safe blue chip stocks to avoid any risks
D) hiring the brightest people
E) buying stocks at the cheapest price available

Question

Quizplus · Accepted Answer

Maximizing shareholder wealth with investments directly aligns with the primary goal of a mutual fund manager, which is to make decisions that enhance the value of the fund's portfolio and, by extension, the wealth of the shareholders.

Imagine That You Are a Manager of a Mutual Fund