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What is the benefit of choosing an exchange-traded fund over an individual stock? An exchange-traded fund will have a higher return than an individual stock.

What is the benefit of choosing an exchange-traded fund over an individual stock?

  • An exchange-traded fund will have a higher return than an individual stock.
  • An exchange-traded fund has a higher variance than an individual stock.
  • An exchange-traded fund eliminates more systemic risk than an individual stock.
  • An exchange-traded fund is diversified and therefore carries less risk than an individual stock.

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