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Which of the Following Is Not True of Index Funds

Question 146

Multiple Choice

Which of the following is not true of index funds?


A) Sometimes they are called "passive" funds.
B) They do have managers that simply buy the securities in the index.
C) They are a low-cost alternative to managed mutual funds.
D) The S&P 500 index outperforms the majority of funds over many years.
E) The typical expense ratio for index funds is 0.50 percent or more.

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