The Major Difference Between Active and Passive Mutual Funds Is

question 87

Multiple Choice

The major difference between active and passive mutual funds is that active funds:

• A) are classed as mutual funds, but passive funds are not.
• B) involve stock picks by managers, while passive funds involve stock picks by the investors themselves.
• C) are more risky than passive funds.
• D) involve stock picks by managers, while passive funds match the movements of a broad market index.

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Definitions:

Domineering

Refers to a behavior that is overbearing or attempts to control others in an assertive or aggressive manner.

Problem Solving

The process of identifying a problem, developing possible solution paths, and taking the appropriate course of action to resolve it.

Psychoanalytic

Pertaining to a psychological theory and therapy method that emphasizes unconscious motivations and conflicts as drivers of behavior.

Freudian Theorist

An expert or adherent of Sigmund Freud's theories, particularly those involving unconscious motives, conflicts, and childhood experiences.