A common strategy for passive management is
A)creating an index fund.
B)creating a small firm fund.
C)creating an investment club.
D)creating an index fund and creating an investment club.

Question

Quizplus · Accepted Answer

Passive management involves creating index funds that track a specific market index. By investing in these index funds, investors can achieve returns similar to those of the overall market, without having to actively manage individual stocks or securities. A small firm fund and investment club are not necessarily related to passive management strategies.

A Common Strategy for Passive Management Is