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

Question

Quizplus · Accepted Answer

An index fund attempts to replicate the performance of a specific stock market index by holding a portfolio of stocks that represents the same mix of securities as the index. Therefore, the fund holds quantities of shares in proportion to their representation in the market.

A Mutual Fund That Attempts to Hold Quantities of Shares