All Statements Relating to Index Funds Are True Except

question 6

Multiple Choice

All statements relating to index funds are true except:

• A) They hold shares in all the companies of the index
• B) They are no-load
• C) They have no 12b-1 fees
• D) They match exactly the performance of the index

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Definitions:

Need For Cognition

Differences between people in their need to think about things critically and analytically.

Critically And Analytically

The process of examining issues, ideas, or objects in a detailed and logical manner, often to evaluate merits and faults or understand deeper meanings.

Persuadability

The susceptibility of an individual to change their beliefs, attitude, or behavior in response to an argument or a message.

Terror Management Theory

A psychological concept suggesting that much of human behavior is motivated by an underlying fear of mortality and the desire to achieve a sense of permanence.