Series 6 - Investment Company And Variable Contracts Products Representative Exam

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Growth funds:

Invest in companies whose stocks are currently undervalued and tend to have elevated levels of risk
A
Invest in companies whose stocks are currently undervalued, tend to have elevated levels of risk and focus on capital appreciation instead of income
B
Tend to have elevated levels of risk and focus on capital appreciation instead of income
C
Tend to have elevated levels of risk, focus on capital appreciation instead of income and invest in companies who tend to reinvest their profits for R&D
D

Explanations

Growth funds tend to have higher levels of risk, focus on capital appreciation and invest in growth companies, which usually reinvest most or all profits for research and development (rather than paying a dividend).

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