Which Type of Fund Is Always Passively Managed

question 83

Multiple Choice

Which type of fund is always passively managed?

• A) a closed-end fund
• B) a growth fund
• C) a value fund
• D) an index fund

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Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a U.S. law enacted in 2002 to protect investors from fraudulent accounting activities by corporations.

Corporate Governance

The system of rules, practices, and processes by which a firm is directed and controlled.

Independent Directors

Independent directors are members of a board of directors who do not have a material or pecuniary relationship with the company or its related entities, ensuring unbiased oversight.

Common Stock

A type of equity ownership in a corporation, giving holders voting rights and a share of profits in the form of dividends.