Large growth funds own:
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A. B. C. D.B
The term "large growth funds" refers to mutual funds or exchange-traded funds (ETFs) that primarily invest in stocks of large companies with a high potential for growth. These funds typically seek out companies with above-average revenue and earnings growth rates.
Out of the given options, answer B is the most accurate representation of the types of stocks that large growth funds own. Large growth funds invest in stocks of large companies that are expected to grow at a faster rate than the overall market, making them an attractive investment opportunity for investors seeking long-term capital appreciation.
Large growth funds typically invest in companies across a range of industries and sectors, including technology, healthcare, consumer goods, and financial services. These companies typically have a track record of strong earnings growth and high return on invested capital, making them attractive to investors seeking above-average returns.
It's important to note that large growth funds do not necessarily focus on companies that have recently grown, as suggested by answer A. Rather, they tend to invest in companies that have a proven track record of sustained growth and have the potential to continue growing at a rapid pace in the future.
Answers C and D are not accurate representations of the types of stocks that large growth funds own. While these funds may invest in a large number of growing companies, their primary focus is on investing in large companies with high growth potential, not just companies that are experiencing growth. Additionally, they do not necessarily invest in growing amounts of large companies, as their investments are guided by the quality of the companies' earnings growth and future growth prospects.