Which of the Following Is True of Equity Funds

question 403

Multiple Choice

Which of the following is true of equity funds?

• A) Managed equity funds generally outperform indexed equity mutual funds.
• B) Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Standard & Poor's 500.
• C) Indexed equity funds generally have lower management and operating costs than managed funds.
• D) Indexed equity funds generally engage in more stock trading than managed funds.

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Definitions:

Phrenologist

A practitioner of phrenology, a now-discredited theory that linked the shape of an individual's skull with their personality traits and mental abilities.

Business-Owner

An individual who legally owns and operates a business, taking on financial risks with the aim of earning profits.

Loyal

Describes a quality of being faithful and devoted to someone or something.

Phrenology

A now-discredited theory that the shape and size of the cranium could determine character and mental abilities.