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Which of the Following Is True About Index Funds

Question 64

Multiple Choice

Which of the following is true about index funds?


A) They consistently outperform 75% of actively managed funds.
B) They make no effort to select the best performing stocks.
C) They consistently underperform 75% of actively managed funds.
D) They outperform the market by selling the weakest companies in the index and weighting the strongest companies more heavily.

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