Which of the Following Statements Is Not True of Passive

question 70

Multiple Choice

Which of the following statements is not true of passive mutual funds and passive ETFs?

• A)use rules-based investing to track and index, typically by holding all of its constituent assets or an automatically selected representative sample of those assets.
• B)As of December 2017, passive funds accounted for 35% of combined U.S.mutual fund and ETF assets under management AUM.
• C)In the last five decades there has been a significant shift from passive toward more active investment strategies.
• D)passive funds have relatively lower costs associated with them.
• E)Due to greater regulatory focus on the fees of investment products have encouraged the financial industry to offer more low-cost passive products.

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Definitions:

Credit Balance

A situation in an account where the sum of credits exceeds the sum of debits.

Contra-Asset

An asset account where its balance is a negative figure, offsetting the balance of a related asset account.

Allowance for Doubtful Accounts

Allowance for doubtful accounts is an accounting provision that estimates the amount of receivables that may not be collectible due to customer defaults.

Contra-Revenue

An account on a company's income statement that deducts from gross revenue to arrive at net revenue, including returns, allowances, and discounts.