(See Steps) A stock index fund invested in a very large number of different stocks, so the return you get from it is roughly the average return for the
Question: A stock index fund invested in a very large number of different stocks, so the return you get from it is roughly the average return for the stocks in the index.
- Which of these two choices would give you a better chance of tripling your money within a month: investing all your money in the index fund, or investing all you money in a few randomly chosen stocks that make up the index?
- Which of these two choices would give you a better chance of losing almost all of your money within a month: investing all your money in the index fund, or investing all your money in a few randomly chosen stocks that make up the index?
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