The Manager of a Passive Mutual Fund

question 75

Multiple Choice

The manager of a passive mutual fund:

• A) invests only in risk-free assets like Treasury bonds.
• B) reacts slowly to changes in stock markets.
• C) does nothing.
• D) tries to track a broad stock market index.

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Definitions:

Motivation

The internal drive or external stimuli that prompt individuals to act or behave in a certain manner towards achieving specific goals.

Desire For Recognition

The human motivation to be acknowledged and valued by others for one's efforts or achievements.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Reacts To Major Events

Refers to the process of responding or adjusting to significant occurrences or changes in the environment.