Which Statement Is Not True About Index Funds as Compared

question 18

Multiple Choice

Which statement is not true about index funds as compared to actively managed funds?

• A)They have lower expense ratios.
• B)They tend to be less profitable than actively managed funds.
• C)They usually have lower turnover in buying and selling assets than actively-managed funds.
• D)They tend to have lower capital gains tax than actively managed assets because the assets are usually held longer before being sold.

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Definitions:

Conversion Disorder

A psychological disorder characterized by neurological symptoms, such as paralysis or blindness, that are not attributable to any medical condition but are associated with psychological factors.

Obsessive-compulsive Disorder

A mental health disorder characterized by recurrent, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels driven to perform.

Multiple-personality Disorder

Now referred to as Dissociative Identity Disorder, it is a psychological condition where two or more distinct and separate identities or personality states are present in, and alternately take control of, an individual.

Psychosis

A severe mental disorder in which thought and emotions are so impaired that contact is lost with external reality.