When a Fund Manager Tries to Pick Stocks to Outperform

question 66

Multiple Choice

When a fund manager tries to pick stocks to outperform the market averages, the mutual fund is called a(n) :

• A) active fund.
• B) passive fund.
• C) random walk fund.
• D) loaded fund.

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Definitions:

Dependent Variable

In an experiment, the variable that is being tested and measured, expected to change in response to manipulations of the independent variable.

Independent Variable

The variable in an experiment that is manipulated or changed by the researcher to observe its effect on the dependent variable.

Manipulation

The skillful or artful management or control of something or someone, often in a manner that is somewhat deceptive or underhanded.

Control Group

In experimental research, it refers to the group of participants who do not receive the experimental treatment, offering a baseline comparison for the effects of that treatment.