Which of the Following Is the Technique Employed by a Passive

question 101

Multiple Choice

Which of the following is the technique employed by a passive portfolio management strategy?

• A) Quantitative screens
• B) Full replication
• C) Use of factor models
• D) Sector rotation
• E) None of the above

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor, immediate expenses.

Cash Controls

Financial procedures and policies that are implemented to manage and monitor cash transactions, to prevent theft, fraud, or errors.

FASB Controls

Guidelines and standards established by the Financial Accounting Standards Board (FASB) to govern the financial reporting and accounting practices of companies in the United States.

GAAP Controls

Financial and accounting guidelines and standards designed to ensure accurate and consistent financial reporting and accounting practices.