Between 1980 and 2005, the Vanguard Index Fund Earned 12

question 95

Multiple Choice

Between 1980 and 2005, the Vanguard Index Fund earned 12.3 percent per year, while the average mutual fund investor earned

• A)1.9 percent.
• B)2.3 percent.
• C)5.1 percent.
• D)7.3 percent.

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Definitions:

Unproven Assumptions

Unproven assumptions are beliefs or premises that are taken as true without having empirical evidence or proof to support them.

Equations

Mathematical statements that assert the equality of two expressions.

Economic Model

A simplified representation of economic processes, often using mathematical formulas, to help analyze and predict economic outcomes.

Value Judgments

Assessments or opinions formed about the worth or importance of something, often based on personal or cultural beliefs rather than objective criteria.