Question

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

A. Mutual funds only invest in blue-chip stocks
B. Investments in mutual funds are more liquid
C. Mutual funds hold a diversified portfolio of stocks.
D. Investments in mutual funds offer a higher rate of return

Answer 1

Why is investing in a mutual fund less risky than investing in a particular company’s stock?

A.

Mutual funds only invest in blue-chip stocks.

B.

Investments in mutual funds are more liquid.

C.

Mutual funds hold a diversified portfolio of stocks.

D.

Investments in mutual funds offer a higher rate of return.

Step-by-step explanation:

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Answer 2

c because they hold a diversified portfolio of stocks