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- Index fund returns do not reflect investment managers' fees
- Index funds are designed to mirror the risk and return characteristics of the markets they measure
- Index funds have lower expense ratios than actively managed funds
- Index funds are typically constructed to limit turnover
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- Greater protection against market risk than a less diversified portfolio
- The same amount of market risk as a less diversified portfolio
- Less protection against market risk than a less diversified portfolio
- Increased exposure to offset losses at any time
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- Buying and holding securities over long time horizons
- Purchasing securities directly from an index provider
- Purchasing investment products designed to track index performance
- All of the above
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- Market information is readily available and incorporated into securities’ prices
- New information about securities, and the effect of this information, can often be predicted
- There are few opportunities to exploit information that may impact securities’ behavior
- Market information is reflected in the performance of indices and the index-linked products that track them
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- Active managers’ fees and the frequent trading costs they incur are an extra hurdle for active funds to overcome in order to outperform their benchmark
- Passive funds outperform active funds because indices include only the top-performing securities in a market
- Most active managers will underperform the market because they invest in both stocks and bonds
- None of the above
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