The Major Difference Between Active and Passive Mutual Funds Is

question 88

Multiple Choice

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

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