SIE Exam Question 494: Answer and Explanation

Question: 494

An investor with $20,000 invested in the XYZ growth fund is:

• A. An owner of XYZ.
• B. A stockholder in XYZ.
• C. Both an owner of XYZ and an owner of an undivided interest in the XYZ growth portfolio.
• D. An owner of an undivided interest in the XYZ growth portfolio.

Correct Answer: D

Explanation:

D: An investor in a mutual fund portfolio has an undivided interest in that portfolio and is not an investor or stockholder in the fund company itself.