The Basic Advantage of Index Funds Over Actively Managed Mutual

question 3

Multiple Choice

The basic advantage of index funds over actively managed mutual funds is that:

• A)They have a higher likelihood of outperforming the market.
• B)They will always yield a profit,however small.
• C)Their operating fees are lower.
• D)All of the above.

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Definitions:

Surface Area

The total area of the outer surface of an object or the boundary covering of a three-dimensional figure.

Respiratory Membrane

A thin barrier in the lungs through which gas exchange occurs between the air in the alveoli and the blood in the capillaries.

Dalton's Law

A principle stating that the total pressure exerted by a mixture of gases is equal to the sum of the pressures that each individual gas would exert if it were present alone.

Gas Movement

The diffusion or transportation of gas molecules from an area of higher concentration to an area of lower concentration.