Relative to its benchmark, an index fund should have an upside and downside capture of approximately:
A) 0%.
B) 50%.
C) 75%.
D) 100%.

Name: Relative to its benchmark, an index fund should have an upside and downside capture of approximately: A) 0%. B) 50%. C) 75%. D) 100%.
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Quizplus · Accepted Answer

An index fund aims to replicate the performance of its benchmark, so it should have an upside and downside capture ratio of approximately 100%, meaning it should perform similarly to the benchmark in both rising and falling markets.

Relative to Its Benchmark, an Index Fund Should Have an Upside