Which Is an Example of Passive Investing

question 29

Multiple Choice

Which is an example of passive investing?

• A) investing in one specific stock
• B) investing in a mutual fund that tries to mimic the S&P 500
• C) investing in a mutual fund that is actively managed by a fund manager
• D) researching many different stocks and accumulating your own portfolio of investments

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Definitions:

Susceptible

Easily influenced or harmed by something; having a vulnerability or tendency to be affected by a particular condition or influence.

Ethical Dilemmas

Situations in which a person must choose between actions that are evaluated as morally right or wrong.

Ethical Principles

Fundamental beliefs or values that guide behavior and decision-making based on notions of right and wrong.

Acquaintances

Individuals one knows slightly but who are not close friends.