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Comparing risks of different mutual fund/ETF types. For each pair of funds listed below, select the fund that would be less risky and briefly explain your answer.a. Growth versus growth-and-incomeb. Equity-income versus high-grade corporate bondsc. Intermediate-term bonds versus high-yield municipalsd. International versus balanced

User Cherisse
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Answer:

Following are the responses to the given points:

Step-by-step explanation:

For point a:

The fund would have been less dangerous for sales and profitability. Each reason would be that growth funds only appreciate investment returns. And on the other side, the growth and economy grew yield gains in term both of equity investment returns or dividend/interest payments, that result throughout the investor's reduced risk.

For point b:

High-quality bond funds are far less dangerous. The reason for this is the investment income is subject to risk and depends on the financial performance of the firm and many other external factors, including that of the country's macroeconomic scenario. Besides that, equity investment dividends aren't guaranteed. That bondholders benefit from the strong business credibility as well as the loan repayments on the investments are assured, independent of the company earnings performance.

For point c:

Its municipalities with such a good return would be less harmful. That reason is that such bonds are provided by public authorities (such as municipalities). Even so, these devices cannot obtain a reputation for credit mostly on market. Consequently, until investing in such securities, it is important to take into account credit scores (assigned to such bonds).

For point d:

The equilibrium fund is much less risky. It is because balanced funds participate in various types of financial securities like assets and liabilities. It helps balance the risk linked to stock market fluctuations with fixed liability returns. In contrast, foreign money invests mainly in foreign share trading and is thus exposed to market volatility and rapid share price fluctuations.

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