Asked by

mahira khanam
on Dec 17, 2024

verifed

Verified

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.
verifed

Verified Answer

SO
Stiven OrtizDec 21, 2024
Final Answer:
Get Full Answer