27. Which option correctly represents the characteristics of ETFs and index funds? A) Index funds are...
27. Which option correctly represents the characteristics of ETFs and index funds?
A) Index funds are priced throughout the trading day like equity securities.
B) When investors purchase an ETF, they typically pay a brokerage fee.
C) ETFs are always priced at the net asset value (NAV) at which investors transact at the closing price on the day.
D) ETFs are more diversified than the index fund.
Homework Answers
Answer: Option B is correct.
Exchange Traded Funds (ETFs) trade like equity shares throughout
the trading day. When we buy ETF shares, we need to pay a brokerage
amount.
Add Answer to:
27. Which option correctly represents the characteristics of
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