Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Conservative mutual funds are best suited for investors with high risk tolerance.
Choose wisely. There is only one correct answer.
False. Conservative mutual funds are best suited for investors who are risk-averse.
2.
A main objective of conservative mutual funds is to generate current income.
Choose wisely. There is only one correct answer.
True. The income objective is one of the defining characteristics of conservative funds.
3.
A secured bond is one that is backed by collateral.
Choose wisely. There is only one correct answer.
True. To be secured is to be backed by collateral.
4.
Conservative mutual funds actively trade their investments.
Choose wisely. There is only one correct answer.
False. Conservative mutual funds rarely trade their investments.
5.
Conservative stock funds invest in _______.
Choose wisely. There is only one correct answer.
Companies with high dividend payments. The stocks of many of these companies have low volatility.