Investments That Are Designed to Match Exactly the Performance of a Group

question 210

Multiple Choice

Investments that are designed to match exactly the performance of a group of stocks like the Dow Jones Industrial Average or the S&P 500 are called

• A) index funds.
• B) dividend funds.
• C) portfolio funds.
• D) capital gain funds.

---

Definitions:

Null Hypothesis

The null hypothesis is a type of hypothesis used in statistics that proposes there is no statistical significance in a set of given observations, serving as a default position until evidence suggests otherwise.

Hypotheses

Statements or predictions that can be tested through scientific research or statistical analysis to determine their validity.

Fair Die

A perfectly balanced six-sided die where each face has an equal probability of landing up when rolled.

Goodness-Of-Fit

A statistical test used to determine how well sample data fits a distribution from a population with a normal distribution.