Which of the Following Is Not Considered a Passive Equity

question 42

Multiple Choice

Which of the following is not considered a passive equity investment:

• A) investing in a sector ETF.
• B) investing in an S&P 500 index mutual fund.
• C) investing in a multi-strategy hedge fund.
• D) investing in a Russell 2000 index mutual fund.

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Definitions:

Behaviour

The actions or reactions of an individual or system in response to external or internal stimuli.

Balance Theory

A psychological theory proposing that individuals strive for internal consistency among their beliefs, attitudes, and opinions, forming a balanced state in interpersonal relationships.

Cognitive Consistency

The psychological concept that suggests that individuals prefer their beliefs, attitudes, and perceptions to be harmonious and consistent with each other.

Self-Perception

An individual's understanding and evaluation of their own personality, characteristics, and behaviors.