Go to www.fool.com/mutualfunds/indexfunds/indexfunds01.htm.
a. Who presented the idea for the first index fund? What was the purpose for which s/he created the fund?
b. How will the expense ratio of an index fund compare to that of an average fund?
c. How will the turnover of an index fund compare to that of an average fund? What impact will this have on transaction costs?
d. What impact does holding cash reserves have on the return of an average mutual fund?