Studies Indicate That the Vanguard 500 Index Fund Tends To

question 5

Multiple Choice

Studies indicate that the Vanguard 500 Index fund tends to:

• A)underperform most professional money managers.
• B)produce a return equal to that of professional managers.
• C)outperform the average professional money manager, but only over the short term.
• D)outperform most professional money managers especially over longer periods of time.
• E)support the argument that the stock market is inefficient.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and the price at which it is sold, when the bond is sold for less than its face value.

Financial Statements

Documents that provide an overview of a company's financial condition, including income statement, balance sheet, and cash flow statement.

Credit

The right side of an account.

Journal Entry

A record in accounting that captures the financial transactions of a business, showing debits and credits for each transaction.