Asked by
mahira khanam
on Dec 17, 2024Verified
Index funds typically have a
A) higher rate of return and higher costs than managed mutual funds.
B) higher rate of return and lower costs than managed mutual funds.
C) lower rate of return and higher costs than managed mutual funds.
D) lower rate of return and lower costs than managed mutual funds.
Index Funds
Mutual funds or exchange-traded funds (ETFs) designed to follow certain preset rules so that the fund can track a specified basket of underlying investments.
Managed Mutual Funds
Programs invested in by shareholders that operate with a mix of different investments, all overseen by experienced investment professionals.
Rate of Return
The increase or decrease in the value of an investment during a particular time frame, presented as a percentage of the investment’s original price.
- Comprehend the principle of risk and return in making investment choices.
Verified Answer
SO
Learning Objectives
- Comprehend the principle of risk and return in making investment choices.