In a Given Year, the S&P 500 Index Fund Outperforms

question 259

Multiple Choice

In a given year, the S&P 500 Index fund outperforms about ______ of all active funds.

• A) 20%
• B) 40%
• C) 60%
• D) 80%

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Definitions:

Leverage Ratio

A financial measurement that compares the amount of a company's debt to its assets, equity, or earnings.

Interest-Burden Ratio

A financial ratio indicating the proportion of profits remaining after paying interest expenses, used to measure a company's ability to manage its interest obligations.

Profit Margin

A financial ratio indicating the percentage of revenue that exceeds the cost of goods sold, representing the proportion of each dollar of revenue that constitutes net profit.

ROA

Return on Assets, a financial ratio indicating how profitable a company is relative to its total assets.