Explain why a passively managed fund guarantees the average return of the individual securities in that fund,

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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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Corporate Finance

ISBN: 978-0077861759

10th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: May 24, 2023 03:15 AM

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Explain why a passively managed fund guarantees the average return of the individual securities in that fund,

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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 the full answer

Corporate Finance

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