Which of the Following Is Not True of Index Funds

question 142

Multiple Choice

Which of the following is not true of index funds?

• A)Sometimes they are called "passive" funds.
• B)They do have managers that simply buy the securities in the index.
• C)They are a low-cost alternative to managed mutual funds.
• D)The S&P 500 index outperforms the majority of funds over many years.
• E)The typical expense ratio for index funds is 0.50 percent or more.

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Definitions:

Spinal Cord

A major part of the central nervous system which extends from the base of the brain through the vertebral canal and is responsible for transmitting nerve signals between the brain and the rest of the body.

Tolerance

The process by which the body becomes less responsive to a substance (such as a drug) or a stimulus after repeated exposure.

Resistance

The refusal to accept or comply with something; the attempt to prevent something by action or argument.

Impaired Memory

A reduction in the ability to remember information or events, which can be temporary or permanent.