Active and passive investing are exclusive, as are traditional and non-traditional managers. Traditional funds never use active strategies or enter the realm of non-traditional investing strategies.Review LaterTrueFalse

Active portfolio management involves:Holding investments long-term without changesFrequent buying and selling to outperform the marketInvesting only in government securitiesAvoiding all high-risk investments40. Portfolio managers use asset allocation to:Minimize regulatory oversightBalance risk and returnAvoid all risksIncrease short-term gains41.  Alternative Investment Funds typically include:Mutual fundsHedge fundsSavings accountsFixed deposits42. Private equity investments involve:Buying public stocksInvesting in government bondsInvesting directly in private companiesTrading derivatives43. AIFs are suitable for:Risk-averse investorsConservative investorsHigh net worth individualsGeneral public44.  Hedge funds are known forLow-risk investmentsAggressive investment strategiesGuaranteed returnsFixed interest payments45. A key characteristic of AIFs is:Higher risk and potential for higher returnsGovernment backingGuaranteed returnsDaily liquidity

Semi-active management is focused on: O a. Taking small, calculated bets to outperform a targeted index on a net of fees basis • b. Using fundamental analysis to identify stocks likely to outperform O c. Tax-efficient outcomes • d. Maximising portfolio liquidity O e. Protecting capital in risk-off environments

An investment philosophy is best defined asa. An approach to active managementb.A set of core beliefs that are used to develop and execute an investment strategyc.A strategy used to implement an asset allocation and security selection programd.Only of relevance to institutional investors.e. None of the options are correct.

Which of the following are true about a passive investment style? Select all that apply.Review LaterTypically doesn’t have a risky investing mandateAttempts to replicate a benchmark or indexUsually lower fees relative to an active investment styleUsually higher fees relative to an active investment styl

Which of the following are true about an active investment style? Select all that apply.Review LaterTrying to earn more than a benchmark or indexReplicate a benchmark or indexMore risk and returnTypically lower fees compared to a passive investment style