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An Exchange-Traded Fund's Portfolio Seeks to Duplicate the Performance of a Specified

question 30

True/False

An exchange-traded fund's portfolio seeks to duplicate the performance of a specified index.​


Definitions:

Fixed Charge Coverage

A financial ratio that measures a firm's ability to cover its fixed charges, such as interest and leases, with its earnings before interest and taxes (EBIT).

Quick Asset Ratio

A liquidity measure that indicates a company's capacity to pay its short-term liabilities with its quick assets, excluding inventories.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations with its current assets over its current liabilities.

Investing Activity

Transactions involving the purchase or sale of long-term assets and other investments not included in cash equivalents.

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