A fund that attempts to duplicate market performance and keeps costs low by using computerized programs to purchase holdings is called:
A)An actively managed fund
B)An index fund
C)A high-tech fund
D)A defensive fund
E)A cyclical fund

Question

Quizplus · Accepted Answer

An index fund attempts to mirror the performance of a specific market index, such as the S&P 500, by purchasing the same securities in the same proportions as the index. This is done to keep costs low and minimize human error in the investment process.

A Fund That Attempts to Duplicate Market Performance and Keeps