About three-quarters of mutual funds are more than
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A. B. C. D. E.Explanation
One of the great advantages of mutual funds is the diversification they provide. Small investors do not have the resources to acquire 100 shares of 10 or 15 different shares, but can instead receive the same diversification by purchasing a mutual fund. Typically about three-quarters of mutual funds have a correlation above 0.90 with the market, meaning that they are more than 90 percent diversified.