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Passively Investing in the S&P 500 Index

Question 16

Multiple Choice

Passively investing in the S&P 500 Index:


A) provides rates of return that are approximately 5% higher than the Dow Jones Industrial Average Index.
B) beats the rate of returns of the majority of all mutual funds in a typical year.
C) is a strategy that is less profitable over the long-term than investing in actively managed funds.
D) provides rates of return that are about 20% lower than the Dow Jones Industrial Average Index.

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