Which of the Following Is a Feature of Index Funds

question 31

Multiple Choice

Which of the following is a feature of index funds?

• A) They have lower fees.
• B) They select and hold stocks to match the performance of a stock index.
• C) They do not require managers to select stocks and decide when to buy and sell.
• D) All of the above.

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Definitions:

Early Majority

A category of individuals in the diffusion of innovations theory who adopt new technology or ideas after the innovators and early adopters.

Innovators

People or companies that introduce new ideas, products, or methods, often driving change and progress in their industry.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, creating a foundation for continuous revenue.

Technology Adoption Life Cycle

A sociological model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups.