Question

The fund that buys and holds a portfolio of stocks equivalent to those in a market index is known as a(n) _____ fund.

A) Balanced
B) Preferred stock
C) Money market
D) Index
E) Socially responsible

Answer 1

An index fund is a type of mutual fund that seeks to imitate the overall behavior of the stock market.

Step-by-step explanation:

An index fund is a type of mutual fund that buys and holds a portfolio of stocks equivalent to those in a market index. It seeks to imitate the overall behavior of the stock market. The fund's value will fluctuate with the overall stock market's average.