Question

A passive fund manager would be most likely to do which of the following ? A-...

A passive fund manager would be most likely to do which of the following ?

A- Research the stocks in the benchmakr's portfolio extensively so as to align with it

B- Align with both the market and individual funds by using competitive information

C- Beat the Benchmark Index performance by achivieng a higher return

D- Match the fund's performance to the benchmark index 's performance

0 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

D- Match the fund's performance to the benchmark index 's performance

A passive fund manager's job is to attempt to mimic the performance of an index, not to exceed it.

Add a comment
Know the answer?
Add Answer to:
A passive fund manager would be most likely to do which of the following ? A-...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • A mutual fund manager, Sally Spartan, has a $24.0 million portfolio with a beta of 1.25....

    A mutual fund manager, Sally Spartan, has a $24.0 million portfolio with a beta of 1.25. The risk-free rate is 3.50%, and the market risk premium is 7.00%. The manager expects to receive an additional $16.0 million which she plans to invest in additional stocks. After investing the additional funds, the total portfolio will equal $40.0 million. Sally wants the final $40 million dollar fund's required and expected return to be 15.0%. What must the average beta of the new...

  • Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of...

    Subject: PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 0.75. The risk-free rate is 4.00%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate...

  • PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00....

    PORTFOLIO BETA A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 7.50%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations....

  • A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 2.00. The risk-free rate is 6.75%, and the market risk premium is 5.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 18%. What should be the average beta of the new stocks added to the portfolio? Do not round intermediate calculations. Round your...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.80. The risk-free rate is 7.75%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 16%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.40. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.40. The risk-free rate is 3.25%, and the market risk premium is 6.5%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 15%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 3.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 17%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free...

    A mutual fund manager has a $20 million portfolio with a beta of 1.3. The risk-free rate is 5.5%, and the market risk premium is 9%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 19%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated...

  • Which of the following is not a benefit of ETFs to investors? (a) Diversification (b) The...

    Which of the following is not a benefit of ETFs to investors? (a) Diversification (b) The ability to short-sell large portfolios of assets relatively easily (c) Being available for both stocks AND bonds, as well as other asset classes (d) The ability to trade throughout the day for NAV (e) None of the above 7. Which of the following assets is most likely to trade over-the-counter but still have high liquidity? (a) A long-term corporate bond (b) A short-term corporate...

  • 29. A mutual fund manager has a $40.00 million portfolio with a beta of 1.00. The...

    29. A mutual fund manager has a $40.00 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 6.00%. The manager expects to receive an additional $29.50 million which she plans to invest in additional stocks. After investing the additional funds, she wants the fund's required and expected return to be 13.00%. What must the average beta of the new stocks be to achieve the target required rate of return? Do not...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT