What Is the Most Important Difference Between an Index Mutual

question 47

Multiple Choice

What is the most important difference between an index mutual fund and an exchange traded fund (ETF) ?

• A)ETFs are better managed.
• B)ETFs trade like stocks.
• C)There are more types of ETFs.
• D)ETFs have higher MERs.

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Definitions:

Evolutionary Hypothesis

A theory suggesting that certain behaviors or traits have developed over time because they were advantageous for survival and reproduction.

Self-determination Theory

A psychological theory that focuses on people's inherent growth tendencies and innate psychological needs.

Autonomy

An individual's capacity for self-governance or self-directing freedom and especially moral independence, critical for personal development.

Competence

An individual's capability to effectively perform or execute a particular task.