An Advantage of Index Funds Over an Active Investment Approach

question 82

Multiple Choice

An advantage of index funds over an active investment approach is:

• A)consistently higher returns
• B)consistently lower risk
• C)lower management expense ratios.
• D)All of these.
• E)None of these.

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Definitions:

Management By Objectives (MBO)

A performance management approach where managers and employees work together to set, record, and monitor goals for a specific period, aiming for organizational alignment and performance improvement.

Work In Process

Items or tasks that are in the stages of production but are not yet completed; also referred to as work in progress.

PERT Event

An activity or milestone within the Program Evaluation and Review Technique, which is a project management tool used to schedule, organize, and coordinate tasks within a project.

Program Evaluation And Review Technique (PERT)

A project management tool used to schedule, organize, and coordinate tasks within a project.