Question: Which one of the following statements is correct concerning mutual funds? Multiple Choice Mutual funds generally pay no taxes. Mutual funds are risk-free. Profits on

Which one of the following statements is correct concerning mutual funds?

Multiple Choice

  • Mutual funds generally pay no taxes.

  • Mutual funds are risk-free.

  • Profits on the sale of mutual fund shares are tax-free.

  • All mutual funds are diversified.

  • Investments in mutual funds are guaranteed from loss by a private agency of the federal government.

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