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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