An indexed equity mutual fund
a. is directly tied to either the consumer price index or the GDP deflator.
b. is a fund that hires a manager who will try to pick the stocks that will increase most in value in the future.
c. merely holds stocks in the same proportion as they exist in a broad stock market index like the Standard & Poor's 500.
d. will have high operating costs because these funds engage in a substantial amount of stock trading.
C
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According to the efficient markets hypothesis, purchasing the reports of financial analysts
A) is likely to increase one's returns by an average of 10%. B) is likely to increase one's returns by about 3 to 5%. C) is not likely to be an effective strategy for increasing financial returns. D) is likely to increase one's returns by an average of about 2 to 3%.
One of the great strengths of the market system is the way it acts as an engine of economic growth and innovation
a. True b. False Indicate whether the statement is true or false