The Key Idea Behind Constructing an Index Fund Is to Choose

question 31

Multiple Choice

The key idea behind constructing an index fund is to choose a portfolio of securities that

• A)is a mix of growth- and income-oriented stocks.
• B)minimizes risk without sacrificing liquidity.
• C)mimics the performance of a broad market index.
• D)balances short- and long-term investments.

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Definitions:

Thromboplastin

A plasma protein that catalyzes the conversion of prothrombin to thrombin, playing a crucial role in the blood clotting process.

Serum

The liquid portion of blood that remains after clotting, containing electrolytes, antibodies, antigens, and other soluble substances.

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin.

Plasma

The liquid component of blood, in which blood cells are suspended, containing proteins, electrolytes, and nutrients.