The Number of Exchange-Traded Funds Has Declined in Recent Years

question 77

True/False

The number of exchange-traded funds has declined in recent years because the cost of managing them was excessive.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically paid to lenders as interest on loans.

Breakeven Analysis

A calculation to determine the point at which revenue received equals the costs associated with receiving the revenue, indicating no net loss or gain.

Financial Leverage

The employment of loaned funds to boost the prospective earnings of an investment.

EBIT

A profitability metric that disregards interest and income tax expenditures, known as Earnings Before Interest and Taxes.