Which of the Following Is an Advantage of an Exchange

question 15

Multiple Choice

Which of the following is an advantage of an exchange traded fund?

• A)No minimum investment amount
• B)Buying and selling shares through a securities exchange at any time during the business day
• C)Low management fees
• D)Using limit orders to both buy and sell
• E)All of these are advantages of ETFs.

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Definitions:

Internal Rate Of Return Method

A method of calculating the profitability of potential investments where the net present value of all cash flows equals zero.

Capital Budgeting

Capital Budgeting is the process by which organizations evaluate potential major projects or investments to determine their value and allocation of capital.

Allocated Fixed Costs

Fixed costs that are distributed among different departments or products based on prescribed criteria.

Direct Fixed Costs

Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center.