Question
What is an index fund?
Question 5 options:
A type of investment fund that aims to replicate the performance of a specific market index
A government-regulated fund for retirement savings
A fund that only invests in technology companies
Question 5 options:
A type of investment fund that aims to replicate the performance of a specific market index
A government-regulated fund for retirement savings
A fund that only invests in technology companies
Answers
GPT-4o mini
The correct option is:
**A type of investment fund that aims to replicate the performance of a specific market index.**
Index funds are designed to track the performance of a particular market index, such as the S&P 500, by holding the same stocks in the same proportions as the index.
**A type of investment fund that aims to replicate the performance of a specific market index.**
Index funds are designed to track the performance of a particular market index, such as the S&P 500, by holding the same stocks in the same proportions as the index.