Question

Which one of the following statements is correct concerning the mutual fund cash ratio​ (MFCR)? A. When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks. Your answer is not correct.B. A high MFCR is like high short interest in that it indicates pent up demand. This is the correct answer.C. Low mutual fund cash is bullish because it means managers have been buying stocks. D. High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw​ funds, a bearish signal.

Answer 1

Answer:

Following is the correct statement "When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks"

Explanation:

When the common assets have a large proportion of cash, it is the indications that stock managers are the market bearish in common and hold back on purchasing.  

Therefore, the correct statement in he given scenario is A and other statement B, C and D are incorrect