A mutual fund which attempts to hold quantities of shares in proportion to their representation in the market is called a __________ fund.
A) stock
B) index
C) hedge
D) money market

Question

Quizplus · Accepted Answer

A mutual fund that attempts to hold quantities of shares in proportion to their representation in the market is called an index fund. This fund tracks a specific stock market index, such as the S&P 500, and aims to replicate its performance. This type of fund offers broad market exposure and typically charges low fees, making it a popular choice among investors. A stock fund invests primarily in individual stocks, a hedge fund aims to generate high returns through various investment strategies, and a money market fund invests in short-term, low-risk securities.

A Mutual Fund Which Attempts to Hold Quantities of Shares