Question

Which of the following is a requirement for a "diversified" fund?

A. At least 75% of assets must be in securities.
B. Less than 5% of assets can be in any one issuer.
C. Less than 10% of voting securities in any one issuer.
D. All of the above.

Answer 1

A diversified fund is required to have less than 5% of assets in any one issuer.

Step-by-step explanation:

A diversified fund is a type of mutual fund that spreads investments across various securities to decrease risk. The requirement for a diversified fund is that less than 5% of assets can be in any one issuer. This means that the fund cannot have a large portion of its assets invested in a single company. By diversifying the investments, the fund is able to mitigate the risk associated with individual stocks or bonds.