You meet with a prospective client, Katarina, for an

You meet with a prospective client, Katarina, for an investment planning discussion. Although Katarina owns several guaranteed investment certificates (GICs), she is very inexperienced when it comes to investing. Katarina is now interested in segregated funds and you discuss the different features and options available with her. When Katarina asks you about the different types of funds available, which of the following would be the CORRECT response that you should provide to her?
a)One of the main concerns associated with real estate equity funds would be liquidity risk.
b)Money market funds typically invest 50% of their assets in cash or cash equivalents.
c)A “fund of funds” is a mirror of an index which is rebalanced to reflect the stocks in the index.
d)Dividend funds use a passive investment strategy to select companies with guaranteed dividends.