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Rhiannon Fahey
on Oct 19, 2024

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A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager changes the weights periodically according to forecasts for each sector. This is an example of ________.

A) a passively managed core with an actively managed component
B) a totally passively managed fund
C) passive asset allocation with active security selection
D) active asset allocation with passive security selection

Equity Index

A statistical measure that represents the value of a set of stocks, showing changes in the overall performance of a stock market or a segment of the stock market.

Portfolio Manager

A professional responsible for making investment decisions and overseeing a portfolio of assets to achieve specific investment objectives.

Active Asset Allocation

An investment strategy that actively adjusts the mix of asset classes in a portfolio based on market conditions and investment goals.

  • Explain the concepts of active and passive fund management.
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kirti kanodia kirtiOct 19, 2024
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