What Is an Important Difference Between an Index Mutual Fund

question 6

Multiple Choice

What is an important difference between an index mutual fund and an exchange traded fund (ETF) ?

• A)ETFs are better managed.
• B)ETFs trade like stocks.
• C)There are more types of ETFs.
• D)ETFs have higher MERs.

Understand and calculate key financial ratios, including inventory turnover, accounts receivable turnover, and dividend yield ratio.

Analyze and interpret the significance of financial ratios in assessing a company's operational efficiency, liquidity, solvency, and profitability.

Compute average inventory, accounts receivable turnover ratio, and total asset turnover from given data.

Calculate and interpret dividend yield, profit margin, total asset turnover, and return on total assets.

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Definitions:

Inferior Good

A type of good for which demand decreases when consumer income rises, unlike normal goods, for which the opposite is observed.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.

Equilibrium Price

The price at which the quantity of a product demanded equals the quantity supplied.