Which of the following statements are TRUE for both mutual funds and variable annuities?

Which of the following statements are TRUE for both mutual funds and variable annuities?


I Asset appreciation is untaxed for both

II Dividend and capital gains distributions are taxable each year for both

III Both have portfolios that are managed

IV Both are regulated by the Investment Company Act of 1940


A. I and II only

B. III and IV only

C. I, III, IV

D. I, II, III, IV


Answer: C.

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