The Major Difference Between Active and Passive Mutual Funds Is

question 87

Multiple Choice

The major difference between active and passive mutual funds is that active funds:

• A) are classed as mutual funds, but passive funds are not.
• B) involve stock picks by managers, while passive funds involve stock picks by the investors themselves.
• C) are more risky than passive funds.
• D) involve stock picks by managers, while passive funds match the movements of a broad market index.

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Definitions:

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

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