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

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