A Portfolio Is Comprised of Three Index Funds: an Equity

question 67

Multiple Choice

A portfolio is comprised of three index funds: an equity index,a bond index and an international index.The portfolio manager changes the weights periodically according to forecasts for each sector.This is an example of __________.

• A) a passively managed core with an actively managed component
• B) a totally passively managed fund
• C) passive asset allocation with active security selection
• D) active asset allocation with passive security selection

---

Definitions:

Standard Price

A predetermined cost that companies use to budget and evaluate the performance of actual costs.

Standard Quantity

The established amount of materials or inputs expected to be used in the production of a good or service.

Total Manufacturing Cost Variance

The difference between total standard costs and total actual costs for the units produced.

Standard Costs

Predetermined costs for the manufacturing of products or services, used as target costs or bases for variance analysis.