The Value of an Investment in an Index Fund Depends

question 218

Multiple Choice

The value of an investment in an index fund depends on

• A)the earnings estimate for the major index constituent.
• B)the average performance of all mutual funds.
• C)what happens to the prices of all stocks in that index.
• D)the specific stock selection practices employed by the fund manager.

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Definitions:

Retrieval

The process of getting information out of memory storage and back into conscious awareness.

Memory Storage

The process of maintaining information over time and across varying conditions, a fundamental aspect of the human cognitive system.

Persistence

The quality of continuing steadfastly or firmly in a course of action despite difficulties or opposition.

Organization

The structured arrangement of resources and processes to achieve specific goals or the act of arranging elements in a systematic way.