Creating an Index Fund Is an Example of Active Portfolio

question 29

True/False

Creating an index fund is an example of active portfolio management.

---

Definitions:

Freezing Temperatures

Freezing temperatures refer to temperatures at or below the freezing point of water, 0 degrees Celsius (32 degrees Fahrenheit), where liquid water turns to ice.

Social Loafing

The situation in which persons demonstrate reduced effort in reaching an objective when part of a team, as opposed to working by themselves.

Social Interference

The phenomenon where the presence or actions of others disrupts the performance of an individual, often leading to a deterioration in task performance.

Group Decision

A process or method where multiple individuals make a choice or judgment together, typically aiming for a consensus.