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:

Endocrine Glands

Glands of the endocrine system that secrete hormones directly into the bloodstream, rather than through ducts.

Hormones

Chemical messengers produced by the endocrine glands that are transported by the bloodstream to target organs to regulate physiology and behavior.

Diaphragm Muscle

The diaphragm muscle is a large, dome-shaped muscle located at the base of the lungs, playing a crucial role in the breathing process by contracting and relaxing to change the volume of the chest cavity.

Thoracic

Pertaining to the chest area, located between the neck and the abdomen.