An Active Fund Is a Fund That

question 13

Multiple Choice

An active fund is a fund that:

• A) uses stock-picking techniques to buy stocks that are projected to beat market averages.
• B) invests in the most actively traded stocks.
• C) avoids investing in low-return assets, such as bonds and real estate.
• D) is diversified in stocks, bonds, currency, and precious metals.

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Definitions:

Inflation Rate

How quickly the overall price level for goods and services climbs, resulting in lower purchasing capability.

Cyclical Unemployment

Unemployment directly related to cycles of economic upturn and downturn, such as recessions and expansions.

Great Depression

A severe worldwide economic downturn during the 1930s, characterized by massive unemployment and deflation.

Ph.D.

A Ph.D. is a Doctor of Philosophy degree, a postgraduate academic degree awarded by universities, signifying advanced research and scholarly achievement in a specific field.