A Fund That Is Designed to Match the Performance of a Measure

question 59

Multiple Choice

A fund that is designed to match the performance of a measure such as the S & P 500 or the Russell 2000 is called a(n)

• A) index fund.
• B) targeted fund.
• C) sector fund.
• D) block fund.

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Definitions:

Earnings Per Share

A financial metric that gauges the portion of a company's profit allocated to each outstanding share of common stock.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.

Profitability

A measure of how much profit a company generates relative to its revenue or assets.

Dividends Per Share

The amount of declared dividend for the year divided by the number of outstanding shares of the company's stock.