Index Funds Have Provided Competitive Rates of Return Because

question 59

Multiple Choice

Index funds have provided competitive rates of return because

• A) their costs are lower than other stock funds.
• B) it is difficult to outperform the market.
• C) they have very low turnover rates.
• D) they are tax efficient.
• E) all of the above.

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Definitions:

Physical Capital

Tangible assets used in the production of goods and services, such as machinery and buildings.

Generates Output

The process of producing or delivering a result, product, or service from a set of inputs or processes.

Undertaking Project

The process of planning, executing, and completing a project with specific goals and objectives.

Value Resources

These are assets or materials that are considered important or beneficial for a company or individual to achieve economic success or meet economic needs.