Which of the following investments is characterized by low risk, low fees, and high historic returns when held over a lengthy time period?
A) A managed mutual fund that has performed well during the past two or three years.
B) A portfolio of technology stocks.
C) A mutual fund that holds stocks in the same proportion as a broad stock market index such as the S&P 500.
D) A mutual fund invested in medium-term bonds issued by the U.S. Treasury.

Question

Quizplus · Accepted Answer

Index funds, which track a broad market index like the S&P 500, typically have low fees, low risk compared to individual stocks, and have historically provided high returns over long periods.

Which of the Following Investments Is Characterized by Low Risk