A funds management style that aims to replicate the performance of a particular market index is:
A)active investment management
B)passive investment management
C)technical analysis
D)fundamental analysis
E)contrarian investment.

Question

Quizplus · Accepted Answer

Passive investment management aims to replicate the performance of a particular market index by investing in a portfolio of securities that mirrors the components of the index. This style does not attempt to outperform the market but rather seeks to match its returns. Active investment management, on the other hand, aims to outperform the market by actively selecting securities that are believed to have better performance prospects. Technical analysis involves analyzing market trends and patterns to make investment decisions, while fundamental analysis involves evaluating a company's financial and economic fundamentals. Contrarian investment involves taking a position opposite to prevailing market sentiment.

A Funds Management Style That Aims to Replicate the Performance