A mutual fund which attempts to hold quantities of shares in proportion to their representation in the market is called a ________ fund.
A)share
B)index
C)hedge
D)money market

Question

Quizplus · Accepted Answer

A mutual fund which attempts to hold quantities of shares in proportion to their representation in the market is called an index fund. This type of fund aims to track the performance of a specific market index, such as the S&P 500, by holding all or a representative sample of the securities included in that index. By doing so, index funds provide investors with broad market exposure while minimizing risks and costs associated with active management.

A Mutual Fund Which Attempts to Hold Quantities of Shares