An Index Fund Limits Its Portfolio to

question 16

Multiple Choice

An index fund limits its portfolio to

• A) high quality securities
• B) stocks that respond to changes in the Consumer Price Index
• C) stocks included in an aggregate measure of stock prices
• D) stocks of firms in a particular industry

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Definitions:

Shameful Thought

An uncomfortable feeling of embarrassment or guilt that arises from actions, thoughts, or circumstances perceived as dishonorable or improper.

Obsessions

Persistent, unwanted thoughts, images, or urges that cause distress or anxiety.

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.

Desensitization

A technique used to reduce or eliminate an organism's response to a stimulus by repeated exposure to that stimulus.