Chapter 15

Chapter 15 - Chapter 15 Test Questions Question 1 When a...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 15 Test Questions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 1 When a comparing actively managed funds to the passively managed (or index) fund, which of the following is true? a. Actively managed funds outperform the index b. Most investors should use actively managed funds c. Index funds pay brokers a larger commission d. Bond funds outperform stock funds e. None of the above are true
Background image of page 2
Answer Question 1 On average passively managed funds have outperformed actively managed funds due in large part to the expenses paid to the active fund managers. Answer : E
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Question 2 Which of the following statements is true of Roth/Traditional IRAs: I. Roth IRAs allow for tax-free growth whereas Traditional IRAs allow for tax-deferred growth II. You contribute after-tax dollars to a Traditional IRA III. In retirement (after 59.5), you must pay taxes on withdrawals from you Traditional IRA IV. Roth IRAs are frequently better for savers who pay taxes at a low-rate today but anticipate higher tax rates in the future a. I and II only b. I, II, and III only c. I, III, and IV only d. I, II, III, and IV e. None of the above
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 9

Chapter 15 - Chapter 15 Test Questions Question 1 When a...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online