Funds Intermediate: Conservative Mutual Funds

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1.
Conservative mutual funds invest in securities with _______.
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Low volatility. Low volatility is part of what makes a conservative fund conservative.
2.
Conservative mutual funds are generally suited for investors with a long time horizon.
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False. Conservative mutual funds are generally suited for investors with a short time horizon.
3.
A secured bond is one that is backed by collateral.
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True. To be secured is to be backed by collateral.
4.
A main objective of conservative mutual funds is to generate current income.
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True. The income objective is one of the defining characteristics of conservative funds.
5.
Conservative stock funds invest in _______.
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Companies with high dividend payments. The stocks of many of these companies have low volatility.