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.

---

Definitions:

Production Filling

A process in manufacturing that involves the controlled dispensation of products, often liquids, into containers.

Sample Mean

The average of a subset of a population, used to estimate the population mean.

Historical Standard Deviation

A measure of the amount of variation or dispersion of a set of historical data points, indicating how much the data points diverge from the historical mean.

Standardized Test

A test that is administered and scored in a consistent manner to ensure legal defensibility and fairness in measuring educational or cognitive abilities.