Professional fund managers do make mistakes

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Reference no: EM131332745

1. Which one of the following statements is false?

A. An exchange-traded fund invests in the stocks or securities contained in a stock or securities index.

B. With an exchange-traded fund, an investor can purchase as little as one share.

C. The return on shares in an exchange-traded fund tend to mirror the performance of the index.

D. A passively-managed exchange-traded fund manager needs to make more decisions than an actively-managed mutual fund manager.

E. Exchange-traded funds are increasing in popularity.

2. Which one of the following statements is false?

A. The responsibility for choosing the right mutual fund rests with the individual investor.

B. Professional fund managers do make mistakes.

C. Although investing in mutual funds provides professional management, individual investors should continually evaluate their mutual fund investments.

D. There is no need to evaluate mutual fund investments because investment companies hire the best professional managers they can to manage their funds.

E. Individual investors should be involved in choosing a mutual fund because they know how the objectives of a mutual fund match their own investment objectives.

Reference no: EM131332745

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