The least risk exposure would be appropriate for a mutual fund which:
A)generates income for investors living on a fixed income.
B)is oriented toward capital gains for wealthy investors.
C)is designed for young, upwardly mobile professionals.
D)None of the above

Question

Quizplus · Accepted Answer

A mutual fund that generates income for investors living on a fixed income would typically prioritize investments in less risky assets such as bonds and dividend-paying stocks. This approach would help ensure steady returns for investors, while also minimizing the risk of significant losses in the event of a market downturn. In contrast, funds oriented toward capital gains or geared toward young professionals may have a higher tolerance for risk and may be more likely to invest in growth-oriented assets such as individual stocks or emerging-market funds.

The Least Risk Exposure Would Be Appropriate for a Mutual