One Characteristic of Most Index Funds Is That Such Funds

question 15

Multiple Choice

One characteristic of most index funds is that such funds typically

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

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Definitions:

Kruskal-Wallis Test

A non-parametric method used for comparing more than two samples that are independent, or not related.

Null Hypothesis

A statement that there is no difference or effect, typically to be tested against an alternative hypothesis proposing a difference or effect.

Significance Level

The probability of rejecting the null hypothesis when it is actually true; a threshold chosen by the researcher to indicate the level of evidence needed to reject the null hypothesis.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more independent samples to determine if they originate from the same distribution.