How Do Actively Managed Funds Differ from Passively Managed Funds

question 309

Multiple Choice

How do actively managed funds differ from passively managed funds?

• A) Managers of actively managed funds use their discretion to buy and sell assets as they attempt to generate higher returns.
• B) Actively managed funds focus on stocks; passively managed funds focus on bonds.
• C) Actively managed funds necessarily contain a greater variety of stocks or bonds than does a passively managed fund.
• D) Actively managed funds consistently outperform passively managed funds.

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Definitions:

Assertive Communication

A communication style in which individuals express their needs and feelings in a direct, honest, and respectful way.

Scientific Evidence

Evidence that is based on scientific research, methods, and experimentation.

Communication Process

The act of transferring information from one place, person, or group to another, involving a sender, message, medium, and recipient.

Psychosocial Needs

The aspects of psychological and social well-being that need to be met to ensure an individual's overall health and quality of life, including emotional support, social interaction, and mental health care.