Question $1$

$1$ pts

The SmarterMarket ETF Company plans to launch an ETF with the

following investment mission:

Provide a portfolio that performs roughly like the S&P $500,$ but with less

volatility of annual returns. Build the portfolio from about $30$ companies

that are active in a varieity of industries.

Is the planned ETF alpha$-$focused or beta$-$focused? Choose alpha, beta or

can't say, and provide the best listed reason for your choice.

Alpha Focused

Beta Focused

Can't say

Not enough information is provided to answer this question

The ETF will gauge its performance relative to the overall stock market.

The ETF will be diversified

The ETF is trying to maximize posative returns.