Which of the following statements about risk-bearing financial institutions is incorrect?
A) An example of a risk-bearing financial institution is a mutual fund.
B) Risk-bearing financial institutions concentrate their investments in a limited number of assets.
C) Risk-bearing financial institutions assume the risks of their customers.
D) All of the above are incorrect.

Question

Quizplus · Accepted Answer

Risk-bearing financial institutions, such as mutual funds, typically diversify their investments across a wide range of assets rather than concentrating them in a limited number. This diversification is a key strategy for managing and mitigating risk.

Which of the Following Statements About Risk-Bearing Financial Institutions Is