Which One of the Following Statements Is False Regarding Exchange-Traded

question 66

Multiple Choice

Which one of the following statements is false regarding exchange-traded funds?

• A)An exchange-traded fund generally invests in the stocks or securities contained in a specific stock or securities index.
• B)With an exchange-traded fund,an investor can purchase as little as one share.
• C)The majority of exchange-traded funds tend to mirror the performance of the index.
• D)A passively managed exchange-traded fund manager needs to make more decisions than an actively-managed mutual fund manager.
• E)No minimum dollar investment amount is required for exchange-traded funds.

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Definitions:

Total

The complete amount or sum of parts or units in a collection.

Distribution

In logic, the act of distributing terms across the components of a categorical syllogism; in mathematics, it refers to the distributive property involving multiplication and addition.

Median

A statistic specifying the middle value of the items in a class on a quantitative variable P.

Parasites

Organisms that live on or within another organism (the host), from which they obtain nutrients at the host's expense.