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

Question

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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:

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

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登录即可查看完整答案

类似问题

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