Investments that are designed to match exactly the performance of a group of stocks like the Dow Jones Industrial Average or the S&P 500 are called
A) index funds.
B) dividend funds.
C) portfolio funds.
D) capital gain funds.

Question

Quizplus · Accepted Answer

These investments are known as index funds because they track a specific stock market index, such as the Dow Jones Industrial Average or the S&P 500. They are designed to mimic the performance of the index they are tracking and are often used as a passive investment strategy.

Investments That Are Designed to Match Exactly the Performance of a Group