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:

Taste Receptor Cells

Specialized cells located on the taste buds of the tongue, responsible for detecting taste stimuli.

Dissolved

The process by which a solid becomes incorporated into a liquid to form a solution.

Hair Follicle

A small tubular cavity containing the root of a hair, from which the hair grows and into which sebaceous (oil) glands open.

Nerve Endings

Specialized structures at the end of nerve fibers that transmit signals to and from different parts of the body to the brain.