Which of the Following Is Not a Reason Why Index

question 12

Multiple Choice

Which of the following is not a reason why index funds typically incur lower expenses than other mutual funds?

• A) Index funds are not actively managed.
• B) There are no expenses for research.
• C) The portfolio is revised infrequently, so transaction costs are low.
• D) The Securities and Exchange Commission sets a limit on index fund expenses.

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Definitions:

Revenue Driver

Key factors or activities that significantly influence or contribute to the generation of income for a business.

Presales Costs

Expenses incurred during the preliminary phase of a sales process, such as market research, product development, and pitch preparation, before actual sales begin.

Cost Of Goods Sold

The immediate expenses linked to the creation of products sold by a business, such as materials and labor.

Financial Report

A formal record of the financial activities and position of a business, person, or other entity, typically prepared on a quarterly or annual basis.