Investing in a Bond Index Portfolio Is an Example of A(n)____

question 11

Multiple Choice

Investing in a bond index portfolio is an example of a(n) ____ approach. Investing in an equity portfolio that mirrors the stock market is an example of a(n) ____ approach.

• A)passive; active
• B)active; active
• C)active; passive
• D)passive; passive

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Definitions:

Tariffs

Taxes imposed by a government on imported goods or services to protect domestic industries or to generate revenue.

Revenue

The total amount of income generated by the sale of goods or services related to a company's primary operations.

Protectionist

Referring to government policies or doctrines that protect domestic industries from foreign competition, often through tariffs and quotas.

Absolute Advantage

The ability of a country, region, or entity to produce a good or service more efficiently than its competitors, using fewer resources.