Which of the Following Statements Is True

question 329

Multiple Choice

Which of the following statements is true?

• A) Passively managed funds do not pay dividends.
• B) Passively managed funds have only one asset in their portfolio.
• C) Actively managed funds constantly buy or sell assets to generate better returns.
• D) Actively managed funds adjust assets to match the performance of a particular index.

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Definitions:

Hypothetical Syllogism

A form of logical argument where two conditional statements lead to a conclusion, if P then Q; if Q then R; therefore, if P then R.

Imported Wine

Wine brought into a country from foreign vineyards or producers, often subject to regulations and duties.

Domestic Wine

Wine that is produced within the same country the consumer is in, as opposed to imported wine.

Standard Form

A way of structuring arguments or expressions according to fixed rules, often to clarify logical relations.