Which of These Is Not a True Statement

question 25

Multiple Choice

Which of these is not a true statement?

• A) ETFs can be purchased through a broker.
• B) ETFs can be purchased on margin.
• C) ETFs can be sold short.
• D) ETFs have lower management expenses than conventional mutual funds.
• E) ETFs can be purchased through a broker, on margin, sold short, and have lower management expenses than conventional mutual funds.

---

Definitions:

Fixed-Asset Turnover

A financial ratio that measures a company's efficiency in using its fixed assets to generate sales, indicating how well assets are being managed.

EVA

Economic Value Added is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit, adjusted for taxes on a cash basis.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and taxes.