Final answer:
The Acme GNMA Fund must have at least 80% of its assets in GNMAs.
Step-by-step explanation:
GNMA (Government National Mortgage Association) funds, also known as Ginnie Mae funds, are designed to primarily invest in mortgage-backed securities issued by the government. The regulations governing these funds require a minimum allocation towards GNMAs. Specifically, these funds are mandated to invest a minimum of 80% of their assets in GNMAs to maintain their status and benefits as GNMA funds. This requirement ensures that investors in these funds gain exposure primarily to the mortgage-backed securities issued or guaranteed by the government. The 80% threshold serves as a guideline to uphold the fund's objectives and maintain the risk-reward profile desired by investors seeking exposure to this particular asset class within the fund.
Correct Answer: At least 80% of Acme GNMA Fund's assets must be invested in GNMAs.