ETFs Are

question 87

Multiple Choice

ETFs are:

• A)limited to diversified index funds.
• B)generally held until they mature.
• C)sponsored primarily by large investment banks.
• D)based on market-cap-weighted indexes only.
• E)claims on shares held in a trust.

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Definitions:

Risk Averse

A characteristic of preferring to avoid loss over making a gain, typically leading to more conservative decision-making in the face of uncertainty.

Investors

Individuals or entities that allocate capital with the expectation of receiving financial returns.

Risk Loving

Condition of preferring a risky income to a certain income with the same expected value.

Risk Neutral

A condition or attitude where an individual is indifferent to risk when making economic decisions.