The major difference between active and passive mutual fundsis that:
A)active funds are classed as mutual funds, but passive funds are not.
B)active funds involve stock picks by managers, while passive funds involve stock picks by the investors themselves.
C)active funds are more risky than passive funds.
D)active funds involve stock picks by managers, while passive funds match the movements of a broad market index.(True
Answer )Correct

Question

Quizplus · Accepted Answer

Active funds are managed by professionals who select stocks to try to outperform the market, whereas passive funds aim to replicate the performance of a specific index.

The Major Difference Between Active and Passive Mutual Fundsis That