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MFL202 1

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

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

a)

Active management

b)

Passive management

2.

Active management involves relentless buying and selling of securities.

a)

True

b)

False

3.

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

a)

True

b)

False

4.

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

a)

True

b)

False

5.

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

a)

True

b)

False

6.

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

a)

True

b)

False

7.

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

a)

True

b)

False

8.

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

a)

True

b)

False

9.

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

a)

True

b)

False

10.

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?

a)

Active management

b)

Passive management