One of the advantages of investing in a managed investment fund is that the investors can:

Question

BlackTom AI · Accepted Answer

To start, let's restate the question and the available choices for clarity.
Question: One of the advantages of investing in a managed investment fund is that the investors can:
Options:
- a. pay zero tax.
- b. obtain direct ownership of shares or property.
- c. hold a larger number of assets than would be possible with direct investment.
- d. avoid the principal-agent problem.

Now, evaluate each option in turn:
Option a: pay zero tax. This is not generally true. Managed funds can be tax-advantaged in some jurisdictions or contexts, but they do not inherently guarantee zero taxes for investors. Tax obligations depend on the investor’s jurisdiction, the fund structure, and the types of income produced. Therefore, this claim overstates tax benefits and is misleading.
Option b: obtain direct ownership of shares or property. In a managed fund, investors typically own a share of the fund rather than direct title to the underlying assets. Direct ownership would usually require purchasing the assets individually, which is precisely what a fund abstracts away from the investor. This makes option b incorrect.
Option c: hold a larger number of assets than would be possible with direct investment. This aligns with a key practical benefit of pooled funds: by aggregating capital, the fund can diversify across a broader set of assets than an individual investor could realistically acquire on their own, given transaction costs, liquidity, and capital constraints. This description matches a common advantage of managed funds.
Option d: avoid the principal-agent problem. The principal-agent problem can still occur in a managed fund setting, where the fund managers (agents) make investment decisions for the investors (principals). It is not guaranteed to be avoided; governance, fees, and alignment mechanisms influence this, but it is not an inherent advantage.

In summary, option c accurately reflects a typical advantage of managed investment funds, while options a, b, and d present inaccuracies or overstatements about tax, ownership structure, and governance problems. The correct reasoning supports option c as the true advantage described here.

One of the advantages of investing in a managed investment fund is that the investors can:单项选择题

类似问题

You can best reduce investment risk by investing in

Holding a portfolio of 30 selected stocks eliminates all risk for an investor.

Which of the following statements about risk is NOT true?

Part 1Which of the following is a benefit to an individual purchasing a mutual fund? Part 2 A. An opportunity to free ride B. Diversification C. Increased risk D. Higher transaction costs

Which one of the following terms best refers to the practice of investing in a variety of diverse assets as a means of reducing risk?

………… could be eliminated by portfolio diversification.

Ms Brown is reviewing her investment portfolio of Australian shares with her advisor. Which of the following statements best explains why investors are typically not compensated for taking on unsystematic risk?

更多留学生实用工具

智能学习助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单