In an Index Fund

question 16

Multiple Choice

In an index fund,

• A)returns are adjusted for changes in the consumer price index.
• B)funds are invested in a mutual fund that attempts to replicate the performance of a major market index.
• C)investors are guaranteed returns equal to a major market index.
• D)high commissions and management fees are charged because of attempts to beat the market.

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Definitions:

Management

The process of dealing with or controlling things or people, often within a business or organization.

Delegation

A manager’s assignment of a specific task or project to an employee.

Relational

Pertaining to the establishment and maintenance of meaningful relationships between individuals or groups.

Horizontal Communication

The exchange of information between peers within the same level of an organization, facilitating collaboration and team coordination.