SIE practice questionmediumETFs
Which investor is most likely to benefit from an ETF’s intraday liquidity?
- AAn investor seeking guaranteed returns
- BAn investor who makes a single, long-term purchase
- CAn active trader who wants to buy and sell throughout the day✓ Correct answer
- DA private equity investor
Explanation
Why C — An active trader who wants to buy and sell throughout the day
Active traders value ETFs for real-time trading. Long-term or non-traders (B, D) and those seeking guarantees (C) do not benefit as directly.
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