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:

Employee Performance

The extent to which an employee's work outputs and actions align with the goals and expectations of their employer.

Required Competencies

The specific skills, knowledge, and abilities needed to perform a job effectively.

MARS Model

A framework in organizational behavior that identifies four critical factors determining employee performance: Motivation, Ability, Role perceptions, and Situational factors.

Competencies

A mix of abilities, expertise, and competencies needed to successfully execute job responsibilities.