Which Statement Is Not True About Index Funds as Compared

question 18

Multiple Choice

Which statement is not true about index funds as compared to actively managed funds?

• A)They have lower expense ratios.
• B)They tend to be less profitable than actively managed funds.
• C)They usually have lower turnover in buying and selling assets than actively-managed funds.
• D)They tend to have lower capital gains tax than actively managed assets because the assets are usually held longer before being sold.

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Definitions:

Rorschach Scoring System

A method for analyzing responses to the Rorschach inkblot test, used to assess personality structure and identify psychological disorders.

Exner's Comprehensive System

A standardized approach to scoring and interpreting the Rorschach inkblot test, developed by John Exner.

Reliability And Validity

Concepts in research and testing that refer to the consistency (reliability) and accuracy (validity) of a measure or instrument.

Empirical Evidence

Information acquired by observation or experimentation that is used as the basis for knowledge or validation of scientific models.