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Index Funds Are an Example of Passively Managed Funds

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Index funds are an example of passively managed funds.


Definitions:

Abductive Reasoning

A form of logical reasoning that starts with an observation or set of observations then seeks to find the simplest and most likely explanation.

Deduction

The process of reasoning from general principles to specific cases, or the subtraction of expenses from income to determine taxable income.

Induction

The process of introducing a new employee to their job and the organization, involving training and information sessions.

Analogy

Examining and contrasting two objects, typically to explain or shed light on them.

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