Even Though Indexing Is Growing in Popularity, Only About ________

question 33

Multiple Choice

Even though indexing is growing in popularity, only about ________ of equity in the mutual fund industry is held in indexed funds. This may be a sign that investors and managers ________.

• A) 5%; are excessively conservative
• B) 25%; overestimate their ability
• C) 15%; suffer from framing biases
• D) 25%; engage in mental accounting

---

Definitions:

Inflammation

The body's response to injury or infection, characterized by redness, warmth, swelling, and pain.

Joint

A structure in the human or animal body at which two parts of the skeleton are fitted together, allowing for movement or flexibility.

Prefix

A set of letters that is added to the beginning of a word to modify its meaning.

Below

A term used to indicate a position lower than a specific reference point.