Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Indexed mutual funds, typically, come with very low fees as they are supposed to track a benchmark. Thus, it's passively managed, and it needs to

Indexed mutual funds, typically, come with very low fees as they are supposed to track a benchmark. Thus, it's passively managed, and it needs to be rebalanced on a monthly basis due to price changes of the benchmark constituents that tilts weights (so they need to be brought back to compliance) and entrance/exits from the benchmark (like Tesla getting into the S&P 500).

True

False

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Vickie L Bajtelsmit

2nd Edition

111959247X, 9781119592471

More Books

Students also viewed these Finance questions

Question

The personal characteristics of the sender

Answered: 1 week ago

Question

The quality of the argumentation

Answered: 1 week ago