A Mutual Fund That Adopts a Passive Management Style Is

question 48

Multiple Choice

A mutual fund that adopts a passive management style is called:

• A) an index fund.
• B) a research fund.
• C) an active fund.
• D) a technology fund.

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Definitions:

Dividend Increases

Dividend increases refer to the raising of the dividend amount paid out by a company to its shareholders over time.

EPS Growth Rate

The annual rate at which a company's earnings per share increases, indicating the company's profitability over time.

Investors Rate of Return

The percentage of return investors expect to earn on their investment, considering both the income and the appreciation of the investment.

Annual Dividend

The total dividend payments made to shareholders in a year, typically expressed per share.