Index Funds

question 46

Multiple Choice

Index funds

• A)buy all the stocks in a given stock index.
• B)promise to beat the market by a certain percentage known as an index.
• C)provide a return that is adjusted for changes in the consumer price index.
• D)buy industries within a particular category of the North American Industry Classification System.

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Definitions:

ANOVA

A statistical method (Analysis of Variance) used to compare the means of three or more samples to see if they come from the same population.

Regression

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Intercept Term

In statistics, the intercept term is a constant value that represents where the estimated regression line crosses the y-axis.

Stepwise Regression

An approach to constructing regression models where the selection of predictor variables is performed through an automated process.