Which of the Following Is Not One of the Characteristics

question 34

Multiple Choice

Which of the following is not one of the characteristics of exchange traded funds (ETFs) ?

• A)They are mostly passive portfolios.
• B)They are sometimes managed portfolios.
• C)They often track a particular sector of the market.
• D)They are priced based on Net Asset Value.

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Definitions:

Contract Curve

In an Edgeworth Box diagram, the curve that represents all the Pareto efficient allocations between two consumers.

Pareto Optimal

A situation of distribution where improving the condition of any individual necessitates the detriment of at least another individual.

Competitive Equilibrium

A state in a market-based economy where supply equals demand, meaning all buyers and sellers are satisfied at the current price level and quantity of goods.

Feasible Allocation

is a concept in economics that refers to the division of resources or goods among various uses or people in a way that is possible given the resources available.