A Portfolio Is Comprised of Three Index Funds: an Equity

question 68

Multiple Choice

A portfolio is comprised of three index funds: an equity index comprising 40% of the total portfolio,a bond index comprising 30% of the total portfolio and an international index comprising 30% of the total portfolio.After each quarter the portfolio manager buys and sells some of each sector so as to preserve the original weights 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:

Hybrid Brain

A hybrid brain combines biological and artificial components, aiming to enhance cognitive functions or compensate for neurological deficits.

Social Cognition

The way an individual understands his or her own social world.

Experiential

Related to or derived from direct experience or the process of actively engaging in an activity, rather than theoretical knowledge.

Closure Quickly

The psychological need or tendency to resolve a situation or obtain an answer swiftly to relieve uncertainty or discomfort.