Index funds are a portfolio of
A)bonds with rates of return fixed at 2 percentage points above the rate of inflation.
B)mutual funds that track different indexes.
C)stocks or bonds that exactly match a particular index.
D)stocks guaranteed rates of return in excess of growth in the GDP price index.

Question

Quizplus · Accepted Answer

Index funds are designed to replicate the performance of a specific index by holding the same stocks or bonds in the same proportions as the index.

Index Funds Are a Portfolio of