Asked by Kevin Lawson on Jun 09, 2024
Verified
The average maturity of fund investments in a money market mutual fund is ________.
A) slightly more than 1 month
B) slightly more than 1 year
C) about 9 months
D) between 2 and 3 years
Average Maturity
The weighted average of all the maturities of the bonds in a portfolio, reflecting the portfolio's sensitivity to interest rate changes.
Money Market Mutual Fund
A type of mutual fund investing in short-term debt securities, offering investors high liquidity with a relatively low level of risk.
- Identify the distribution patterns of assets within mutual funds among options like bond funds, equity funds, and money market funds.
Verified Answer
BB
Baris BeyduzJun 16, 2024
Final Answer :
A
Explanation :
Money market mutual funds invest in short-term securities such as Treasury bills, commercial paper, and certificates of deposit. The average maturity of these investments is typically around 30-60 days, so the best choice is A) slightly more than 1 month.
Learning Objectives
- Identify the distribution patterns of assets within mutual funds among options like bond funds, equity funds, and money market funds.