WorksheetsExit Ticket FY-7.5
Total questions: 3
Worksheet time: 2mins
Name
Class
Date
1.
All of the following are true about a passively managed fund EXCEPT…
a)
Fees for a passively managed fund are typically lower than those for an actively managed fund
b)
Passively managed funds are generally seen as low risk investments
c)
A passively managed fund guarantees the average return of the securities it includes
d)
Passively managed funds are managed by a fund manager
2.
How do exchange traded funds (ETFs) differ from actively managed mutual funds?
a)
ETFs generally come with high fees while actively managed mutual funds do not
b)
ETFs can be traded throughout the day while actively managed mutual funds cannot
c)
ETFs use a pool of money from multiple investors while actively managed mutual funds do not
d)
ETFs are generally seen as high-risk investments while actively managed mutual funds are not
3.
Why might a target date fund be a good option for someone who wants a hands-off approach to investing?
a)
Target date funds automatically adjust your asset allocation as you get to retirement.
b)
Target date funds are actively managed by a fund manager.
c)
Target date funds only invest in low-risk bonds.
d)
Target date funds offer low fees while also promising to outperform the market.
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