Which of the Following Statements Concerning Index Funds and Actively

question 29

Multiple Choice

Which of the following statements concerning index funds and actively managed funds is true?

• A) Their performance is about equal.
• B) They tend to have an inverse relationship.
• C) Actively managed funds tend to outperform index funds.
• D) Index funds tend to outperform actively managed funds.

---

Definitions:

Spectrum

A range of different positions, opinions, or conditions usually used to describe a series from one extreme to another.

Binary System

A system consisting of two components or parts, often used to describe a system of numerical notation that has 2 rather than 10 as a base.

Genetic Component

Genetic component means the portion of a phenotype or disease risk attributable to genetic factors, highlighting the role of heredity in certain conditions or traits.

Sexual Orientation

An enduring pattern of emotional, romantic, or sexual attractions to men, women, or both sexes.