1. Passive management involves a single manager, co-managers or a team of managers who attempt to beat the market return by actively managing a fund's portfolio through investment decisions based on research and decisions on individual holdings.

A. True

B. False

2. Which one of the followings is not a common structure for a passive strategy?

A. Mutual fund

B. Private partnership

C. Unit investment trust

D. Exchange-traded fund

3,.Which one of the followings is not true regarding active portfolio management?

A. Active management traditionally charges high fees, and recent research has cast doubts on managers' ability to consistently outperform the market.

B. Portfolio managers engaged in active investing pay close attention to market trends, shifts in the economy, changes to the political landscape, and factors that may affect specific companies.

C. An actively managed investment fund has an individual portfolio manager, co-managers, or a team of managers actively making investment decisions for the fund.

D. Active management involves the creation of a portfolio intended to track the returns of a particular market index or benchmark as closely as possible.

4. Since the objective of a portfolio manager in an actively managed fund is to beat the market, he or she must take on additional market risk to obtain the returns necessary to achieve this end.

A. True

B. False