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What is the correct definition of an ETF?

  • A type of stock that represents ownership in a company
  • A type of mutual fund that invests in a diversified portfolio of stocks and bonds
  • A type of investment fund that tracks a specific market index (correct)
  • A type of bond that is issued by the government

    • What is the formula for calculating the Price-to-Earnings (P/E) ratio?

  • Earnings per Share / Market Capitalization
  • Earnings per Share / Price per Share
  • Market Capitalization / Earnings per Share
  • Price per Share / Earnings per Share (correct)

    • What is the purpose of fundamental analysis in the stock market?

  • To analyze technical indicators of stock performance
  • To predict short-term fluctuations in stock prices
  • To evaluate a company's financial health and growth prospects (correct)
  • To identify insider trading activity

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