(Last Word) Actively Managed Funds

question 234

Multiple Choice

(Last Word) Actively managed funds

• A) generate lower costs than passively managed funds.
• B) generally outperform passively managed funds.
• C) generally perform the same as passively managed funds.
• D) are generally outperformed by passively managed funds.

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Definitions:

Outside Company

A firm or business that is external or not directly connected to one's own organization.

Equity Method

An accounting technique used by companies to assess the profits earned by their investments in other companies, where the investment is recorded at original cost and adjusted for the investor's share of the investee's profit or loss.

Cash Dividend

A distribution of a company's earnings to shareholders in the form of cash.

Voting Common Stock

Shares that give the shareholder voting rights in corporate decisions, typically involving one vote per share owned.