The Management of Index Funds Is _________ Than the Management

question 403

Multiple Choice

The management of index funds is _________ than the management of non-index funds, because an index fund manager only needs to track a relatively fixed index of securities.

• A) More "Passive"
• B) More "Active"
• C) Less "Passive"
• D) Relatively less "Active"

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Definitions:

Variable

An element or factor that can change or vary, affecting the outcome of mathematical models, experiments, or financial projections.

Fixed

Pertaining to costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

Mixed

Pertaining to costs or variables that have both fixed and variable components, changing with the level of activity but not directly proportional to it.

Selling Price

The cost at which consumers can purchase a product or service.