IIA
IIA-CFSA · Question #187
Auditors should be aware that the investment objectives of a mutual fund are usually based on a risk profile outlined in the fund prospectus. For example, aggressive growth funds may invest in…
The correct answer is B. Funds that invest only in environmentally conscious companies. See the full explanation below for the reasoning.
Question
Auditors should be aware that the investment objectives of a mutual fund are usually based on a risk profile outlined in the fund prospectus. For example, aggressive growth funds may invest in highly volatile stock issues and a money market fund may invest in lo –risk money market instruments. Other funds have investment objectives based on the type or location of companies they invest in, such as:
Options
- AFunds that invest only in non-profit organizations
- BFunds that invest only in environmentally conscious companies
- CFunds that invest only in U.S. government organizations
- DNone of these
How the community answered
(20 responses)- A15% (3)
- B75% (15)
- C5% (1)
- D5% (1)
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