A key reason that actively managed funds have lower returns than index funds with a similar level of risk is that:
A. Index funds require more buying and selling to generate their returns
B. Management and trading costs reduce the returns of actively managed funds
C. Index funds spend more on research and management
D. Diversification is more important to actively managed funds
B. Management and trading costs reduce the returns of actively managed funds
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Suppose Bill receives a consumer surplus of $3 on his purchase of a pizza, for which he paid $9. The price Bill was willing and able to pay is
a. $15 b. $12 c. $9 d. $6
Which of the following is TRUE of trends in the number of new U.S. patents?
A. The number of new patents granted each year has remained unchanged since the early 1970s. B. The number of new patents granted each year declined by more than 50 percent after 2001. C. There was a surge in new patents in the latter part of the 1990s. D. There was a steady increase in new patents throughout the 1970s.
Define the two categories of saving in the economy
What will be an ideal response?
Define trade surplus and trade deficit
What will be an ideal response?