FINRA Series 6

Category - Series 6

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Which of the following is not a potential advantage associated with investing through a mutual fund?

lower cost associated with portfolio management
simplified recordkeeping
price discovery
diversification

Explanation

Answer: C - Price discovery is not a potential advantage associated with investing through a mutual fund. The net asset value of the fund determines its price, not the interaction of buyers and sellers in the market. All the other choices are advantages of investing through a mutual fund.

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FINRA Series 6

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