A Portfolio Consists of Three Index Funds: an Equity Index

question 42

Multiple Choice

A portfolio consists of three index funds: an equity index accounting for 40% of the total portfolio, a bond index accounting for 30% of the total portfolio, and an international index accounting for 30% of the total portfolio. After each quarter the portfolio manager buys and sells some of each sector to preserve the original weights for each sector. This is an example of ________.

• A) a passively managed core with an actively managed component
• B) a totally passively managed fund
• C) passive asset allocation with active security selection
• D) active asset allocation with passive security selection

Learn the initial steps and considerations in developing a new scale or survey tool.

Understand the differences and applications of Thurstone and Likert scales.

Acknowledge the impact of respectful and culturally sensitive survey questions on participant response rates.

Master the process and order of operations in creating, testing, and finalizing a survey.

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Definitions:

Corporate Social Responsibility

Corporate social responsibility (CSR) involves businesses undertaking initiatives to contribute positively to society and the environment beyond their core economic motives.

Competitive Markets

Markets characterized by the presence of multiple sellers and buyers, leading to a high level of competition and consumer choice.

Pure Monopoly

A pure monopoly exists when a single company or entity is the sole provider of a particular product or service, facing no competition in its market.

Monopolistic Competition

A market configuration where numerous firms offer similar, yet not identical, products, providing them with a certain level of market influence.