Mutual funds are riskier than single stocks, but the reward is greater.

Question

-true
-false

Answer 1

False. This statement is not necessarily true. Mutual funds and single stocks both have their own risks and rewards, and it ultimately depends on the specific fund or stock being considered. A diversified mutual fund may be less risky than an individual stock, while a high-risk mutual fund may be riskier than a well-established stock. It is important for investors to do their research and consider their individual goals and risk tolerance before making investment decisions.