The key idea behind constructing an index fund is to choose a portfolio of securities that
A) is a mix of growth-oriented and income-oriented stocks.
B) minimizes risk without sacrificing liquidity.
C) mimics the performance of a broad market index.
D) balances short-term and long-term investments.

Question

Quizplus · Accepted Answer

An index fund aims to replicate the performance of a specific market index by holding a portfolio of securities that matches the index's composition.

The Key Idea Behind Constructing an Index Fund Is to Choose