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:

Operant Response Rates

The rate at which an organism performs a behavior that is reinforced by a consequence in a given period, used in operant conditioning research.

Personal Freedom

The liberty of individuals to pursue their own interests and choices without undue interference or restriction from societal norms or government.

Pleasure-Seeking Tendencies

The inclination towards behaviors or activities that provide immediate gratification or enjoyment.

Cultural Background

The environment, traditions, social and legal systems, and heritage shared by a group of people.