Which of the Following Best Describes the Pattern in the Returns

question 64

Multiple Choice

Which of the following best describes the pattern in the returns of index funds?

• A)They typically have about the same rate of return as more actively managed funds.
• B)They typically have lower rates of return than more actively managed funds.
• C)There is no pattern; they may have either higher or lower rates than more actively managed funds.
• D)They typically have higher rates of return than more actively managed funds.

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Definitions:

Stephen Foster

An American songwriter known for his parlor and minstrel music in the 19th century, often referred to as the "father of American music."

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An individual skilled in creating lyrics and melodies that are typically combined to produce songs.

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A novel by Nathaniel Hawthorne that explores themes of legalism, sin, and guilt in Puritan society.

Hawthorne

Nathaniel Hawthorne, an American novelist and short story writer, known for his dark romanticism and works such as "The Scarlet Letter" and "The House of the Seven Gables."