SIE Understanding Products and Their Risks Practice Question 88
Question: 88
Which of the following is most similar to a typical mutual fund?
Correct Answer: C
Explanation:
C: Choice C is correct because ETFs are registered investment companies and provide diversification, professional management, and liquidity, as mutual funds do. Choice A is incorrect because of uncertain diversification and illiquidity. Choice B is incorrect because ETNs do not necessarily provide diversification or professional management. Choice D is incorrect because limited partnerships do not necessarily provide diversification or liquidity.
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