11. Which statement is not true about index funds as compared to actively managed funds? A. They have lower expense ratios B. They tend to be less profitable than actively managed funds C. They usually have lower turnover in buying and selling assets than actively managed funds D. They tend to have lower capital gains tax than actively managed assets because the assets are usually held longer before being sold

Financial Management: Theory & Practice
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ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter12: Corporate Valuation And Financial Planning
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11. Which statement is not true about index funds as compared to actively managed funds?
A. They have lower expense ratios
B. They tend to be less profitable than actively managed funds
C. They usually have lower turnover in buying and selling assets than actively managed funds
D. They tend to have lower capital gains tax than actively managed assets because the assets are
usually held longer before being sold
Transcribed Image Text:11. Which statement is not true about index funds as compared to actively managed funds? A. They have lower expense ratios B. They tend to be less profitable than actively managed funds C. They usually have lower turnover in buying and selling assets than actively managed funds D. They tend to have lower capital gains tax than actively managed assets because the assets are usually held longer before being sold
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