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:

Ordinal

Pertaining to a type of data or scale that shows an order or rank among values, where the intervals between values are not necessarily consistent.

Pie Chart

A pie chart is a circular graph divided into sectors, each representing a proportion of the total. It is used to visualize the relative sizes of parts of a whole.

Frequency

In statistics, it refers to the count of how often each value of a set of data occurs; in waves, it refers to the number of occurrences of a repeating event per unit of time.

Variable

A component, characteristic, or aspect that is subject to change or variation.