Which Is Not an Advantage of Exchange-Traded Funds (ETFs)

question 13

Multiple Choice

Which is not an advantage of exchange-traded funds (ETFs) ?

• A)Their expense ratios are lower than mutual funds
• B)Because they imitate an index, there are no real research costs
• C)They can be bought and sold all day long at a price that is almost exactly the net asset value of the stocks in the index
• D)The assets in the portfolio are marked to market continuously
• E)They are open-ended funds that have reasonably low sales expenses

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Definitions:

Economic Efficiency

Refers to the optimal production and distribution of resources to maximize social welfare and minimize waste.

Real Wage

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.

Purchasing Power

The ability of an individual or entity to buy goods and services, essentially reflecting the amount of goods or services that one unit of currency can buy.

Nominal Wage

The wage measured in dollars of the year in question; the dollar amount on a paycheck.