Which of the Following Statements Concerning Index Funds and Actively

question 29

Multiple Choice

Which of the following statements concerning index funds and actively managed funds is true?

• A) Their performance is about equal.
• B) They tend to have an inverse relationship.
• C) Actively managed funds tend to outperform index funds.
• D) Index funds tend to outperform actively managed funds.

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Definitions:

Cognitive-behavioral

A psychological approach that combines cognitive and behavioral therapies to treat various disorders, focusing on changing negative thought patterns and behaviors.

Change Reactions

Emotional or behavioral responses triggered by alterations in one's environment or life situation.

Cognitive-behavioral Approach

A psychological treatment method that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Hallucinatory Voices

Auditory hallucinations where an individual hears voices without an external stimulus, often associated with psychiatric disorders.