What Is the Objective of an Active Fund Manager

question 6

Multiple Choice

What is the objective of an active fund manager?

• A)To earn returns similar to the market index by adopting a 'buy and hold' strategy
• B)To earn return similar to the 10- year bond rate by buying and selling treasury notes in an effort to realise capital gains
• C)To outperform the index by buying and selling shares in an effort to realise capital gains
• D)None of the above

---

Definitions:

Chloride Shift

The chloride shift is a process during which chloride ions move from the blood plasma into red blood cells as bicarbonate ions leave, helping maintain ionic balance in blood during gas exchange.

Vital Capacity

The maximum amount of air a person can expel from the lungs after a maximum inhalation.

Tidal Volume

The amount of air that is inhaled or exhaled during normal breathing with each respiratory cycle.

Residual Capacity

The amount of air remaining in the lungs after a normal expiration, critical for continuous gas exchange between breathing cycles.