The Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so, the fund buys shares in each S&P 500 company ________.
A) in proportion to the market value weight of the firm's equity in the S&P 500
B) in proportion to the price weight of the stock in the S&P 500
C) by purchasing an equal number of shares of each stock in the S&P 500
D) by purchasing an equal dollar amount of shares of each stock in the S&P 500
Correct Answer:
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I. Results in greater tax
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