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True or False Most exchange traded funds (ETFs) are long-term mutual funds designed to replicate a...

True or False

Most exchange traded funds (ETFs) are long-term mutual funds designed to replicate a particular market index.

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Answer #1

True.

Exchange traded funded funds invest in a basket of stocks, which replicate the stocks contributing to an index like S and P 500 , DJIA etc.

These funds can be traded on stock exchange like listed stocks.

The returns on these stock will closely resemble the movement of that particular stock index.

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