Because an index fund is a mirror image of a specific index, the dollar value of a share in an index fund increases when the index increases.

Name: Because an index fund is a mirror image of a specific index, the dollar value of a share in an index fund increases when the index increases.
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

A share in an index fund is designed to mimic the performance of a specific stock market index. Therefore, when the index that the fund follows goes up, the dollar value of a share in the index fund also increases.

Because an Index Fund Is a Mirror Image of a Specific