In Spite of Lower Fees, Index Funds Underperform Actively Managed

question 109

True/False

In spite of lower fees, index funds underperform actively managed funds in most years.

Understand the significance of the GDP deflator and its role in adjusting nominal GDP to real GDP.

Recognize the components of GDP (consumption, investment, government purchases, net exports) and their impact on the economy.

Identify what is included and excluded in GDP calculations.

Comprehend the concept of net investment and its relation to gross investment and depreciation.

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Definitions:

Negligence

Failure to exercise the care that a reasonably prudent person would exercise in like circumstances.

Occupiers' Liability Act

The Occupiers' Liability Act is legislation that defines the duty of care owed by individuals or entities in control of premises to those who enter the premises.

Volenti No Fit Injuria

A legal principle that means no injury is done to a person who willingly consents to or understands the risk of harm or injury in their actions.

Contributorily Negligent

A legal doctrine where a plaintiff's own negligence partially contributes to the harm they suffered.