(Last Word) Passively managed funds produce higher rates of return for investors than actively managed funds because:
A. trading and management costs are higher with actively managed funds.
B. passively managed funds invest in riskier assets that have higher rates of return.
C. actively managed funds invest in riskier assets that have not reached expected rates of
return.
D. actively managed funds are taxed, while passively managed funds are not taxable.
A. trading and management costs are higher with actively managed funds
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Consider the following data for a closed economy:
a. Y = $12 trillion b. C = $8 trillion c. I = $3 trillion d. TR = $2 trillion e. T = $3 trillion Use the data provided to calculate the level of private saving and the level of public saving and demonstrate their relationship to investment.
Most economists believe that the higher average salaries earned by men in comparison to women arise from
a. discrimination. b. a variety of factors, including differences in human capital and compensating differentials; few economists believe that gender discrimination in earnings exists. c. differences in human capital as the primary reason. d. a variety of factors, including differences in human capital, compensating differentials, and discrimination.