Which one of the following characteristics best fits an index fund?

Question

Quizplus · Accepted Answer

An index fund is typically passively managed, meaning it tracks a specific market index and does not rely on active management decisions. The other choices do not fit the characteristics of an index fund - A) market outperformer implies active management, B) high expenses are not a characteristic of index funds, D) dividend orientation is not necessarily a characteristic of index funds, and E) high turnover rate implies active management.

Which One of the Following Characteristics Best Fits an Index