MFL202 1

Standard and Poor's 500 is an example of __________.

• Active management

• Passive management

Active management involves relentless buying and selling of securities.

• True

• False

Passive management is targeted at making the most of the market situations.

• True

• False

Standard & Poor's (S&P) is a leading index provider and data source of independent credit ratings.

• True

• False

In S&P 500, D is the highest rating given.

• True

• False

The S&P 500 includes futures contracts, mutual funds, and ETFs.

• True

• False

The success of active management funds depends on research, market forecasting, etc.

• True

• False

Passive management is the one in which people implement a laid-back approach.

• True

• False

The overall cost involved is more in passive management than in active management.

• True

• False

Ben is willing to take risks to get good returns and he has to decide between active management and passive management. Which one do you think he should select?

• Active management

• Passive management