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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