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FinCap Friday: When the Mean is Nice Flashcards | StudBud

Explore/FinCap Friday: When the Mean is Nice

FinCap Friday: When the Mean is Nice

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A #personalfinance quiz about index funds

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Questions 5

Answers

1
As a result of the growing popularity of low-cost index funds...
Less people now invest in stocks than ever
More people are willing to pay a manager to invest for them
Investment firms spend less on technology
Investment firms are forced to cut fees in order to stay competitive
2
In early 2024, breaking news about the stock market revealed that:
New technology is making it harder for average people to invest
Stock trading was the most common job in 2024
Most investments are now in low-cost index funds
A recession officially began in spring 2024
3
Roughly what percentage of fund managers picking stocks actually do worse than the average of the stock market?
90%
10%
50%
75%
4
Managers picking stocks charge about $0.66 per yr for every $100 managed. Choosing funds with no active manager costs:
an average of $0.01 per yr
an average of $0.05 per yr
an average of $0.50 per yr
an average of $0.10 per yr
5
Index funds are designed to...
Make less profit than all the stocks in the stock market
Match the profits of a large group of stocks in the stock market
Have no connection to the stock market at all
Beat the profits of a large group of stocks in the stock market