FA-6.1-6.3,6.7: Investing Review

Who manages a passively manged fund?

• A computer

• A person

Who manages an actively managed fund?

• A computer

• A person

Fees are generally ____ in a passively managed fund.

• higher

• lower

Tags

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.5

CCSS.RI.11-12.3

CCSS.RI.9-10.3

Fees are generally ____ in an actively managed fund.

• higher

• lower

Tags

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.5

CCSS.RI.6.5

CCSS.RI.7.5

The goal of passive investing is to ____.

• match the market

• outperform the market

The goal of active investing is to ____.

• match the market

• outperform the market

The type of fund for passive investing is ____.

• Index Fund

• Actively Managed Mutual Fund

The type of fund for active investing is ____.

• Index Fund

• Actively Managed Mutual Fund

The individual assets contained in an actively mutual fund are selected by…

• The pool of investors

• The investor who owns the most shares of the fund

• An automated computer program

• A professional fund manager

Which is the best description of an index fund?

• A mutual fund that tracks the performance of a specific market benchmark

• A retirement fund for employees over age 50

• An index made up exclusively of government bonds

• A safe investment product that guarantees a high rate of return