Passive Portfolio Management Consists of

question 6

Multiple Choice

Passive portfolio management consists of

• A)market timing.
• B)security analysis.
• C)indexing.
• D)market timing and security analysis.
• E)None of the options

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Definitions:

Budget Performance Report

A report that compares budgeted amounts to actual amounts for revenues, expenses, and other financial parameters to measure the financial performance of a company.

Budgeted Amounts

Estimated financial figures used for planning purposes, outlining the expected revenues, expenses, and other financial transactions for a future period.

Actual Amounts

Actual amounts refer to the true or real figures that have been recorded in financial transactions, not estimates or projections.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing for a more accurate comparison of actual vs. budgeted performance.