Earnings on pooled investments and changes in fair value of investments are allocated to the participants having an equity interest in the pool in proportion to their relative contributions to the pool. 1. true2. false

1) True

Explanation:

Generally pooled investments like mutual funds issue their own shares that basically include the value of all the securities that the pool has invested in. If you invest $2,000, then you are given shares that represent $2,000 in investments. if the value of the investment rises 10%, the value of your shares will increase to $2,200 (10%).