Someone Who Invests in the Vanguard Index 500 Mutual Fund

question 56

Multiple Choice

Someone who invests in the Vanguard Index 500 mutual fund could most accurately be described as using what approach?

• A) Active management
• B) Arbitrage
• C) Fundamental analysis
• D) Passive investment

Appreciate the cultural and contextual sensitivities in public speaking and presentation delivery.

Understand the concept of utilitarian and hedonic needs and how they motivate consumer behavior.

Grasp the fundamentals of expectancy theory and its application in motivation.

Comprehend the theory of cognitive dissonance and its impact on sales and consumer behavior.

---

Definitions:

Fair Value

The estimated market value of an asset or liability, based on current conditions and mutually agreed upon by both buyer and seller.

Trading Investments

Financial assets that a company intends to buy and sell within a short time frame, typically to capitalize on short-term market movements.

Historical Cost

The original monetary value of an asset or investment at the time of its acquisition or payment, not adjusted for inflation or market changes.

Market Value

The existing market price for buying or selling an asset or service.