Which of the following statements is FALSE:
A) Individual investors should be involved in choosing a mutual fund because they know how the objective of a mutual fund match their own investement objectives
B)Professional fund managers do make mistakes
C)Although investing in mutual funds provides professional management,individual investors should continually evaluate their mutual fund investements
D)There is no need to evaluate mutual fund investments because investment companie hire the best professional managers they can to manage their funds
IS D CORRECT ANSWER?THANK YOU:)))
I believe D is the correct answer, yes.
THANK YOU:))
No, statement D is not correct. The correct answer is D because it states that there is no need to evaluate mutual fund investments because investment companies hire the best professional managers. This statement is false because even though professional managers are hired to manage mutual funds, it is still important for individual investors to evaluate their mutual fund investments regularly. Therefore, statement D is the false statement.
No, D is not the correct answer. The false statement in the given options is actually D) "There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds."
The correct approach to determining the false statement is to evaluate each statement individually and assess its accuracy.
A) Individual investors should be involved in choosing a mutual fund because they know how the objective of a mutual fund matches their own investment objectives.
This statement is generally true. Individual investors should be involved in choosing a mutual fund because they need to ensure that the objectives of the fund align with their own investment goals. While professional advice can be helpful, it is essential for investors to understand their own financial objectives and evaluate if a particular fund meets those objectives.
B) Professional fund managers do make mistakes.
This statement is true. Professional fund managers, like any individuals in any field, are prone to making mistakes. They could misjudge market conditions, select the wrong investments, or face unforeseen circumstances that affect their decision-making. It is important for investors to be aware that mistakes can happen, even with experienced fund managers.
C) Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments.
This statement is true. Investing in mutual funds does provide professional management, but it does not mean that individual investors should be complacent. Proper evaluation of mutual fund investments is crucial to ensure that the fund continues to align with the investor's financial goals. Monitoring factors such as fund performance, fees, and changes in fund management is necessary to make informed decisions.
D) There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.
This statement is false. While investment companies typically aim to hire skilled and experienced fund managers, it does not eliminate the need for individual investors to evaluate their mutual fund investments. Even with professional management, factors such as changing market conditions, fund performance, and fees can impact the investor's overall returns. Continuous evaluation allows investors to make informed decisions and make any necessary adjustments to their investment strategy.
In conclusion, the false statement is D) "There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds."