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:

Rapid Change

A situation or event that evolves quickly over a short period of time, often with profound effects.

Continuance Commitment

Commitment based on the costs that would be incurred in leaving an organization or a lack of suitable job alternatives.

Pension Fund

A pool of funds accumulated to pay employees' retirement benefits, contributed by employers, employees, or both.

Employment Time

The duration or period a person is engaged in work or holds a job.