kyliepops5408 kyliepops5408
  • 03-01-2020
  • Business
contestada

Which of the following statements are true regarding the use of index funds as investment vehiciles for asset classes?

Respuesta :

jepessoa
jepessoa jepessoa
  • 04-01-2020

Answer:

IV) Index funds are broadly diversified

Explanation:

The use of index funds increase diversification since they hold all the securities in the index. By holding all the stocks of the index, the risk lowers (it approaches systematic risk) and the expected returns should be very similar to the expected market returns.

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