Mutual funds that hold both equities and fixed-income securities in relatively stable proportions are called ________.

A) income funds
B) balanced funds
C) asset allocation funds
D) index funds

Balanced Funds

Mutual funds that invest in a mix of asset classes, typically stocks and bonds, aiming for a balance between risk and return.

Equities

Shares of stock representing ownership interests in companies, offering potential for capital gains and dividends.

Fixed-income Securities

Financial instruments that pay a fixed amount of income, usually in the form of interest or dividends, like bonds or preferred stocks.