Which One of the Following Statements Is False

question 79

Multiple Choice

Which one of the following statements is false?

• A) An exchange-traded fund invests in the stocks or securities contained in a stock or securities index.
• B) With an exchange-traded fund, an investor can purchase as little as one share.
• C) The return on shares in an exchange-traded fund tend to mirror the performance of the index.
• D) A passively-managed exchange-traded fund manager needs to make more decisions than an actively-managed mutual fund manager.
• E) Exchange-traded funds are increasing in popularity.

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Definitions:

Disjoint

Referring to sets that have no elements in common; also used to describe events that cannot occur at the same time.

Proportion

The fraction of times an event occurs relative to the total number of trials or instances.

M&M Candy

A brand of colorful, button-shaped chocolates with a letter "m" printed on them, encased in a sugar shell.

Drawn

A term used to describe an outcome or result that ends in a tie or no clear winner, or the process of extracting or pulling something.