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Question
Consider the following points related to Exchange Traded Funds (ETF):
1. It is a basket of securities that trade on exchange
2. They offer a diversified portfolio
Which of the above is/are correct?
Consider the following points related to Exchange Traded Funds (ETF):
1. It is a basket of securities that trade on exchange
2. They offer a diversified portfolio
Which of the above is/are correct?
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Solution
The correct option is C Both 1 and 2
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->
An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can.
<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same way a regular stock can.
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