question 8 of 10\nwhy is it less risky to invest in a mutual fund than stocks alone?\na. mutual funds only…

question 8 of 10\nwhy is it less risky to invest in a mutual fund than stocks alone?\na. mutual funds only invest in bonds and securities.\nb. mutual funds only invest in safe stocks and bonds.\nc. mutual funds balance risk by spreading investment over a variety of stocks, bonds, and securities.\nd. mutual funds balance risk by avoiding investment in stocks.

question 8 of 10\nwhy is it less risky to invest in a mutual fund than stocks alone?\na. mutual funds only invest in bonds and securities.\nb. mutual funds only invest in safe stocks and bonds.\nc. mutual funds balance risk by spreading investment over a variety of stocks, bonds, and securities.\nd. mutual funds balance risk by avoiding investment in stocks.

Answer

Brief Explanations:

Mutual funds pool money from multiple investors and invest in a diversified portfolio of stocks, bonds, and other securities. Diversification helps spread risk. If one investment under - performs, others may perform well, reducing overall risk compared to investing in a single stock.

Answer:

C. Mutual funds balance risk by spreading investment over a variety of stocks, bonds, and securities.