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What Is the Fundamental Difference Between an Active Versus Passive

question 45

Essay

What is the fundamental difference between an active versus passive investment strategy? Why might a bank choose one over the other?


Definitions:

Dielectric Oil

A type of insulating oil often used to cool transformers.

Insulator

A material or device that resists the flow of electric current, used to prevent undesired current flow.

Cooling

The process of removing heat from an object or space, often to maintain a desired temperature.

Phase Current

The electric current flowing through one phase of a multi-phase system, like in three-phase electrical systems.

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