The Key Idea Behind Constructing an Index Fund Is to Choose

question 21

Multiple Choice

The key idea behind constructing an index fund is to choose a portfolio of securities that

• A) is a mix of growth-oriented and income-oriented stocks.
• B) minimizes risk without sacrificing liquidity.
• C) mimics the performance of a broad market index.
• D) balances short-term and long-term investments.

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Definitions:

Cranial Nerve

One of twelve nerves that originate in the brain and supply motor and sensory functions to the head, neck, and some body parts.

Oxyhemoglobin

A form of hemoglobin bound to oxygen, which is responsible for transporting oxygen from the lungs to the tissues in the body.

Increased Blood Flow

An augmentation in the volume of blood circulated to a specific area of the body, often necessary for healing and maintaining organ function.

Skin Color

The pigmentation of a person's skin, which can vary widely among individuals.