Question: Explain why a passively managed fund guarantees the average return of the individual securities in that fund, but it cannot ever outperform the return of

Explain why a passively managed fund guarantees the average return of the individual securities in that fund, but it cannot ever outperform the return of the index it tracks. What is one advantage and one disadvantage of this strategy?

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A passively managed fund also known as an index fund aims to replicate the performance of a specific market index such as the SP 500 It achieves this ... View full answer

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