(Last Word) Before Trading Costs and Management Fees Are Taken

question 297

Multiple Choice

(Last Word) Before trading costs and management fees are taken into account, passively managed funds outperform actively managed funds by about ______ percent per year.

• A) 5
• B) 1
• C) zero
• D) 3

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Definitions:

Taxable Income

The portion of an individual's or corporation's income that is subject to income tax after allowances, exemptions, and deductions.

Taxable Income

The portion of an individual's or corporation's income used as a basis to calculate how much they owe in taxes to the government.

U.S. Tax Court

A federal court that hears and adjudicates tax-related disputes and issues between taxpayers and the Internal Revenue Service (IRS).

U.S. District Court

Federal courts in the United States that have general jurisdiction over civil and criminal cases.