A Significant Advantage of Index Funds Is Their

question 71

Multiple Choice

A significant advantage of index funds is their:

• A) lower market price than other types of funds.
• B) superior sector rotation approach.
• C) tax efficiency.
• D) minimization of risk.

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Definitions:

Gain on Sale

The financial profit realized when an asset is sold for more than its original purchase price or book value.

Jointly Controlled Operation

A business activity where two or more parties share control and decision-making responsibilities.

Calculation Principles

refer to the basic guidelines or formulas used for calculating financial figures in the accounting process.

Joint Venture

A business agreement between two or more parties to combine resources for a specific project or business activity, sharing risks and rewards.