How Do Actively Managed Funds Differ from Passively Managed Funds

question 309

Multiple Choice

How do actively managed funds differ from passively managed funds?

• A) Managers of actively managed funds use their discretion to buy and sell assets as they attempt to generate higher returns.
• B) Actively managed funds focus on stocks; passively managed funds focus on bonds.
• C) Actively managed funds necessarily contain a greater variety of stocks or bonds than does a passively managed fund.
• D) Actively managed funds consistently outperform passively managed funds.

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Definitions:

Array

A data structure that stores a fixed-size sequential collection of elements of the same type.

Data Types

Categories of data that specify the kind of value that a variable can hold in programming, such as integers, floats, or strings.

Memory Organization

The way in which memory is structured and managed in a computer system, affecting data access and storage efficiency.

ControlLogic (CLX) Controller

A type of programmable logic controller (PLC) used in industrial applications for automation and control.