Multiple choice

An Ex-Mark of 100% is possible for

  1. a growth fund

  2. an aggressive growth fund

  3. an index fund

  4. a balanced fund
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

An index fund aims to replicate the performance of a market benchmark. When it perfectly tracks the benchmark, the excess return (Ex-Mark) over the benchmark can theoretically reach 100%, meaning the fund's return equals the benchmark return. Active funds like growth or aggressive growth funds typically aim to beat the benchmark but cannot guarantee 100% correlation.

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