The Manager of a Passive Mutual Fund

question 75

Multiple Choice

The manager of a passive mutual fund:

• A) invests only in risk-free assets like Treasury bonds.
• B) reacts slowly to changes in stock markets.
• C) does nothing.
• D) tries to track a broad stock market index.

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Definitions:

Vibrant

Full of energy and enthusiasm; bright and vivid in color or sound, contributing to a lively and dynamic environment.

Body Mass Index

A measurement derived from the mass and height of an individual, used to classify underweight, healthy weight, overweight, and obesity.

Underweight

A condition characterized by a body weight considered too low for a healthy stature, often measured in relation to an individual's height.

Inverted Triangle

A graphical representation used to illustrate a reversed hierarchical structure, often used in organizational contexts.