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How Do Index Funds Keep Their Expense Ratios Low

Question 43

Multiple Choice

How do index funds keep their expense ratios low?


A) They trade stocks,often for maximum gains.
B) They maintain their holdings in the same proportion as well-known indexes.
C) They have a team of professionals watch for the best options so as to continually tune the fund's performance.
D) They hold less than 20 companies in the fund.

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