Someone who invests in the Vanguard Index 500 mutual fund could most accurately be described as using what approach?
A) Active management
B) Arbitrage
C) Fundamental analysis
D) Passive investment

Question

Quizplus · Accepted Answer

Investing in the Vanguard Index 500 mutual fund involves passive investment, as it seeks to replicate the performance of the S&P 500 index rather than outperform it through active management, arbitrage, or fundamental analysis.

Someone Who Invests in the Vanguard Index 500 Mutual Fund