An Indexed Equity Mutual Fund

question 128

Multiple Choice

An indexed equity mutual fund

• A) is directly tied to either the consumer price index or the GDP deflator.
• B) is a fund that hires a manager who will try to pick the stocks that will increase most in value in the future.
• C) merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500.
• D) will have high operating costs because these funds engage in a substantial amount of stock trading.

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Definitions:

Death Wish

A desire for one's own death or an attraction to behaviors significantly increasing the risk of death.

Murders Committed

The act of unlawfully killing another human being with premeditation or intent.

Common Method

A technique or procedure that is widely used or accepted in a particular field or by a specific group.

Poor Neighborhoods

Areas characterized by economic disadvantage and often associated with high rates of crime and unemployment.