Explain what an investment in a mutual fund offers in terms of risk.

A.Mutual funds offer moderate risk since they are composed of different types of assets that are diversified.
B. Mutual funds offer moderate risk since they are funded by pooled resources from many different investors.
C.Mutual funds offer low risk since they are funded by pooled resources from many different investors.
D. Mutual funds offer high risk since they include the purchase of stocks, which are extremely volatile.

A. Mutual funds offer moderate risk since they are composed of different types of assets that are diversified.