Mutual funds are attractive to small investors because (a) the funds offer a guaranteed return on investment (b) the funds are insured by an agency of the US government

(c) the funds offer the opportunity to share in an investment in a variety of stocks and bonds
(d) investors know that at the end of a specified number of years their investment will be worth more than it would have been if they had put their money into a savings account

My answer is C. Am I correct? Thanks!

Yes, you're correct.

No, your answer is not correct. The correct answer is (c) the funds offer the opportunity to share in an investment in a variety of stocks and bonds. Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. By investing in mutual funds, small investors can gain access to a diversified portfolio that would typically be difficult for them to achieve on their own. This diversification helps to spread the investment risk and potentially increase returns.

It's important to note that mutual funds do not guarantee a specific return on investment (option a) and they are not insured by an agency of the US government (option b). Mutual fund investments are subject to market fluctuations and there is no guarantee of profits.

So, the correct answer is (c) the opportunity to share in an investment in a variety of stocks and bonds.