Which of the following would be the best strategy for a long-term investor wanting to earn an attractive rate of return?
A) Pick stocks that have done well in the past.
B) Buy shares of an equity mutual fund indexed to the S&P 500.
C) Purchase shares of a money market mutual fund.
D) Buy shares of an actively managed equity mutual fund.

Question

Quizplus · Accepted Answer

Investing in an S&P 500 index fund is generally considered a good long-term strategy because it provides broad market exposure, low operating expenses, and historically has delivered solid returns over time.

Which of the Following Would Be the Best Strategy for a Long-Term