Which of the Following Characteristics Apply to Exchange Traded Funds

question 67

Multiple Choice

Which of the following characteristics apply to exchange traded funds (ETFs) ?
I. unlimited number of outstanding shares
II. typically track the performance of some index
III. Market prices may be higher or lower than NAV.
IV. May invest in the whole index or use a sample of securities to track the index as closely as possible.

• A) I and II only
• B) II and III only
• C) I, II and III only
• D) I, II and IV only

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Definitions:

Superiority of Reason

The belief that reason and logical thinking are the highest means of understanding or solving problems, superior to emotion or faith.

Western Philosophy

A tradition of philosophy that originates in the Western world, encompassing a wide range of theories and philosophical movements from ancient times to the present.

Sexism

Prejudice, stereotyping, or discrimination, typically against women, on the basis of sex.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.