Funds Intermediate: Conservative Mutual Funds

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1.
If you are trying to conserve principal, a conservative mutual fund may help you reach your goals.
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True. Conservative mutual funds are made for just that purpose.
2.
Conservative stock funds invest in _______.
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Companies with high dividend payments. The stocks of many of these companies have low volatility.
3.
A balanced mutual fund is highly diverse.
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True. To be balanced, such a fund must choose a wide variety of investments.
4.
Conservative mutual funds actively trade their investments.
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False. Conservative mutual funds rarely trade their investments.
5.
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.