The Return on an Index Fund May Be Less Than

question 37

Multiple Choice

The return on an index fund may be less than the return on the index it represents because of

• A)tracking errors and costs.
• B)management fees.
• C)load fees.
• D)dividends and taxation.

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Definitions:

Organizational Effectiveness

A measure of how successfully an organization achieves its goals and objectives, often evaluated through performance, adaptability, and sustainability.

External Environment

The external environment of an organization includes all outside factors and forces that affect its operations, ranging from economic, socio-cultural, legal, technological, to political conditions.

Environmental Uncertainty

The extent to which an organization lacks information or control over the elements of its environment, affecting decision-making and strategy.

Opportunities

Chances or situations that can lead to the advancement or progress in a person's career, business, or other aspects of life.