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:

Internal Environment

Internal factors within an organization, including employees, company culture, and internal processes.

Strategic Environment

The external and internal factors that influence an organization's strategy and strategic planning processes.

Organizational Culture

The collection of values, beliefs, behaviors, customs, and attitudes that characterizes an organization and guides its practices.

Derived Demand

The demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being driven by the demand for automobiles.