In an Index Fund

question 49

Multiple Choice

In an index fund

• A)Returns are adjusted for changes in the consumer price index
• B)Funds are invested in a mutual fund that attempts to replicate the performance of a major market index
• C)Investors are guaranteed returns equal to a major market index
• D)High commissions and management fees are charged because of attempts to beat the market

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Definitions:

Service Business

A type of business that primarily offers intangible goods or services to consumers, such as consulting, legal advice, and maintenance services.

Merchandising Business

A type of business that makes profit by buying goods at a wholesale price and selling them at a retail price, primarily dealing in goods rather than services.

Financial Statements

Financial statements are records that provide an overview of a company's financial performance and position, typically including the balance sheet, income statement, and statement of cash flows.

Purchases Returns and Allowances

From the buyer’s perspective, returned merchandise or an adjustment for defective merchandise.