Over the Past Decade, Passively Managed Index Funds Have

question 3

Multiple Choice

Over the past decade, passively managed index funds have

• A) grown quite a lot.
• B) declined in popularity.
• C) attracted almost 100% of investment dollars.
• D) almost disappeared as a fund type.

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Definitions:

Cost Savings

The reduction in expenses achieved through efficient management, elimination of waste, or other means, contributing to improved financial performance.

Profit Sharing

A compensation strategy where employees receive a portion of the company's profits, aligning their interests with the financial success of the business.

Gain-Sharing

A plan that allows employees to share in cost savings or productivity gains realized by their efforts.

Net Profits

The financial gain attained by a business after subtracting all operating expenses, interest, taxes, and any other necessary expenditures from its total revenue.