One Characteristic of Most Index Funds Is That Such Funds

question 15

Multiple Choice

One characteristic of most index funds is that such funds typically

• A) produce a large dollar amount of realized capital gains every year.
• B) have a very low-cost structure with respect to management fees and transaction fees.
• C) charge high front-end loads.
• D) are designed to "beat the market."

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Definitions:

Resource

An input used in the production of goods or services, such as labor, land, capital, and technology.

Units

A standard quantity or measurement used to express the quantity of a product or dimension of a measure.

Purely Competitive Market

A market structure where no single buyer or seller has the power to influence prices, and products are perfectly substitutable.

Wage Rate

The standard amount of compensation an employee receives for performing a specific task or for working a certain amount of time, typically measured per hour or per unit of work.