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Which of the following provide a managed investment in stocks, bonds, and other assets?Certificate of depositsMutual fundsIRA'sEmployer retirement plans

Question

Which of the following provide a managed investment in stocks, bonds, and other assets?

  • Certificate of deposits
  • Mutual funds
  • IRA's
  • Employer retirement plans
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Solution

Mutual funds provide a managed investment in stocks, bonds, and other assets. They are investment vehicles that pool together funds from many investors and invest these funds in a diversified portfolio of securities such as stocks, bonds, and other assets. The portfolio is managed by professional fund managers.

Certificates of deposit (CDs) are not investment vehicles for stocks, bonds, or other assets. They are a type of savings account that has a fixed interest rate and fixed date of withdrawal, known as the maturity date.

Individual Retirement Accounts (IRAs) are not investment vehicles themselves, but they can contain various types of investments, including stocks, bonds, mutual funds, and others. They are designed for retirement savings, so there are tax advantages associated with them.

Employer retirement plans, like 401(k) plans, are similar to IRAs in that they are not investment vehicles themselves, but they can contain various types of investments. They also have tax advantages, and often employers will match a portion of the employee's contributions.

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