Question
Mutual funds are riskier than single stocks, but the reward is greater.
(1 point)
Responses
True
True
False
False
(1 point)
Responses
True
True
False
False
Answers
GPT-4o mini
False.
Mutual funds are generally considered to be less risky than single stocks because they diversify investments across a variety of securities, which can help mitigate individual stock volatility. While they may offer significant rewards depending on the market and fund management, the risk-return profile of mutual funds is typically viewed as more favorable compared to individual stocks.
Mutual funds are generally considered to be less risky than single stocks because they diversify investments across a variety of securities, which can help mitigate individual stock volatility. While they may offer significant rewards depending on the market and fund management, the risk-return profile of mutual funds is typically viewed as more favorable compared to individual stocks.