The Major Difference Between Active and Passive Mutual Fundsis That

question 92

Multiple Choice

The major difference between active and passive mutual fundsis 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.(True
• Answer )Correct

Understand the financial reporting and adjustment processes.

Comprehend the computation and significance of earning per share (EPS) and price-earnings (P/E) ratios.

Identify the calculation and implications of dividend yield.

Understand the differences between book value and market value.

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Definitions:

Stages Of Development

The distinct phases of intellectual, emotional, and physical growth through which an individual typically progresses in a predictable sequence during their lifetime.

Personality

An individual's characteristic patterns of thinking, feeling, and behaving.

Mature

Showing the mental, emotional, or physical characteristics associated with a fully developed person; exhibiting full development in body or mind.

L-Data Technique

A methodological approach in psychology that involves using life record data, such as school records or survey responses, to assess personality.