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75-5-10 Rule

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Term75-5-10 Rule

What does 75-5-10 Rule mean? This rule indicates the benchmarks that a mutual fund must meet to be considered "diversified".


How the exam might test 75-5-10 Rule: 75% of the fund must have no more than 5% of assets invested in any one security. Also, no more than 10% of a company’s outstanding shares may be owned.



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