Which of the Following Statements Regarding ETFs Is False

question 12

Multiple Choice

Which of the following statements regarding ETFs is false?

• A)Traditionally actively managed
• B)Pool together investors' monies for joint management
• C)Traded intraday like stocks
• D)Typically lower cost structure than mutual funds
• E)Usually traded at close to market value of its underlying holdings

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Definitions:

Negative Number

A real number that is less than zero, indicating a direction opposite to positive numbers.

Null Hypothesis

A type of hypothesis used in statistics that proposes there is no statistical significance between two variables, or that a statement of no effect or no difference will be true.

Two-Tailed

In hypothesis testing, it refers to the methodology that considers both directions of a possible effect, allowing for investigation of deviations in two opposite directions from the null hypothesis.

Pearson Correlation

A metric that quantifies the linear relationship between two variables, providing a value in the range of -1 to 1.