Funds Intermediate: Conservative Mutual Funds

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1.
A mutual fund is conservative as long as its goal is to conserve principal.
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True. That is the defining characteristic of conservative funds.
2.
Large portions of a conservative mutual funds investments are likely to be in growth stocks.
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False. Large portions of a conservative funds investments are likely to be in bonds.
3.
Conservative stock funds invest in _______.
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Companies with high dividend payments. The stocks of many of these companies have low volatility.
4.
A secured bond is one that is backed by collateral.
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True. To be secured is to be backed by collateral.
5.
Conservative mutual funds are best suited for investors with high risk tolerance.
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False. Conservative mutual funds are best suited for investors who are risk-averse.