Which One of the Following Statements Concerning ETFs Is Correct

question 22

Multiple Choice

Which one of the following statements concerning ETFs is correct?

• A) ETFs are based solely on U.S. indexes.
• B) The ETF based on the Standard & Poor's 500 Index is priced at 1/10 the value of that index.
• C) Spiders are based on the DJIA.
• D) The ETF based on the Dow is priced at 1/10 of the value of the DJIA.

Perform cost calculations and make journal entries for material, labor, and overhead costs.

Understand the nature and purpose of managerial accounting.

Recognize the distinction between line and staff departments within the organizational structure.

Identify the roles and responsibilities of key accounting positions within an organization.

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Definitions:

Zero Growth Stock

A stock from a company which is expected to see no growth in dividends or earnings, typically offering high initial dividend yields.

Annual Dividend

The total amount of dividends that a company pays out to its shareholders over a single fiscal year.

Required Rate of Return

The minimum return that investors expect to earn from their investment in a particular asset, considering the risk associated with it.

Dividend

A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.