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How Do Actively Managed Funds Differ from Passively Managed Funds

Question 309

Multiple Choice

How do actively managed funds differ from passively managed funds?


A) Managers of actively managed funds use their discretion to buy and sell assets as they attempt to generate higher returns.
B) Actively managed funds focus on stocks; passively managed funds focus on bonds.
C) Actively managed funds necessarily contain a greater variety of stocks or bonds than does a passively managed fund.
D) Actively managed funds consistently outperform passively managed funds.

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