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alexdok [17]
3 years ago
11

Why might a mutual fund be a better investment than individual stocks and bonds?

Social Studies
1 answer:
Veseljchak [2.6K]3 years ago
7 0

The correct answer is C) risk is diversified with a mutual fund.

<em>A mutual fund might be a better investment than individual stocks and bonds because the risk is diversified with a mutual fund. </em>

A mutual fund is an instrument that allows you to invest your money in a pool of money that is collected from many people investing in the same fund. It could be an investment in stock, money market, or bonds.

The advantages of a mutual fund over individual stocks are that diversification. The money is allocated in different securities. Another one could be that professionals manage the money and know what to do with it and in what time. The risk is diversified and you can cash your money out when you want.


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3 years ago
Contingency adduction is the emergence of accurate responding to untrained and non-reinforced stimulus-stimulus relations follow
sukhopar [10]

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How do substitutes affect demand?
OverLord2011 [107]

With the increase or decrease of the prices of substitutes, the demand of the substitute goods also decreases or increases.

Explanation:

Substitutes are the products which can be used in place of another product. For example, a cup of coffee can be taken instead of a cup of tea, or Coke can be taken instead of Pepsi.

Change in the price of Substitutes can affect the demand of other substitutes. If the price of a product increases, then the demand of its substitute increases, and if the price of the product decreases, then the demand of its substitute also decreases.

We can understand this relation with an example. Suppose the product is tea. The substitute of tea is coffee. If the price of tea increases, then people will definitely move towards the substitute, which is coffee. This will increase the demand for coffee. Similarly, if the price of tea decreases, people will buy more tea than coffee, which will decrease the demand for coffee. This is how the substitutes affect demand of each other.

Learn more about substitutes at:

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