destineedhuber9633 destineedhuber9633
  • 06-01-2020
  • Business
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The disadvantage of owning a mutual fund that invests in common stocks is the risk of loss of ___.

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GuilhermeSouzaS
GuilhermeSouzaS GuilhermeSouzaS
  • 07-01-2020

Answer:

"Principal" Since the value of common stock could decline to zero, investors do carry the risk of losing their entire principal. That risk is greatly reduced when investing in bonds, because if you hold a bond to its maturity date, you will at least get back the par value ($1000) of the bond.

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