Question

All of the following are advantages of using the services of an investment company except:

A. professional management.
B. diversification.
C. ease in selling shares.
D. insurance protection against loss of principal.

Answer 1

D is correct, I took the test. :)

Answer 2

the one that is not an advantage of using the services of an investment company is: D. insurance protection against loss of principal.
The largest risk in every investing actions is the loss of principal. If there is such a thing as insurance protection against loss of principal, people could buy as many shares as they want without having to worry about the potential loss.