Is buying a single company's stock a safer return than a mutual fund?

Buying a single company’s stock usually provides a safer return than a stock mutual fund. A. True B. False Answer: B, False. Explanation: To answer this question correctly, it is important to understand both risk and that a mutual fund owns a variety of companies. They keyword here is safer.

Is buying a single company's stock better than a mutual fund?

Question 3: “Please tell me whether this statement is true or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund.” (Answer: false.) The initial survey — of Americans 50 and older — found that only half could get both of the first two questions right, while only one-third answered all three correctly.

Should you buy a stock if inflation is 1 percent?

More of the respondents, three-quarters, can answer the inflation question correctly and understand they would be able to buy less after a year if the interest rate was 1 percent and inflation 2 percent. Yet only half of the respondents know that holding a single company stock implies a riskier return than a stock mutual fund.