One Characteristic of Most Index Funds Is That Such Funds

question 19

Multiple Choice

One characteristic of most index funds is that such funds typically

• A) are designed to "beat the market."
• B) charge high entry fees.
• C) produce a large dollar amount of realised capital gains every year.
• D) have a very low- cost structure with respect to management fees and transaction fees.

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Definitions:

Drive-Reduction Theory

Approach to motivation that assumes behavior arises from physiological needs that cause internal drives to push the organism to satisfy the need and reduce tension and arousal.

Eating

The act of consuming food for nourishment and energy.

Smoking Pot

A colloquial term for the act of inhaling the smoke produced by burning cannabis, a psychoactive drug.

Need for Affiliation

The desire to form and maintain social connections and relationships, often driven by feelings of belongingness and social support.