Which of the following statements best describes mutual funds?
◦ They are illegal in the United States, but popular in Europe.
◦ They enable investors to buy many shares of stock in a single firm at a lower cost than using a stockbroker.
◦ They provide good investment returns, but insufficient diversification.
◦ They enable many investors with limited funds to buy a diversified portfolio.
◦ They appeal only to wealthy investors.