The Return on an Index Fund May Be Less Than

question 2

Multiple Choice

The return on an index fund may be less than the return on the index it represents because of all of the following except

• A)it may not own all the companies included in the index.
• B)the load charge.
• C)the expense ratio.
• D)excessive commissions on frequent trades by the fund.

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Definitions:

Chunking

A method of breaking down large pieces of information into smaller, more manageable units to aid in memory retention.

Late

Occurring or coming after the usual, expected, or planned time.

Chunking

A memory technique that involves grouping pieces of information together into larger, more manageable units.

Meaningful Units

Smallest segments of language that carry semantic meaning, such as words or morphemes.