When you were at lunch, you overheard a heated conversation between two employees of Big Rock. One was arguing a case for active fund management strategies and the other was arguing a case for passive fund management strategies. They decide to get your opinion on the two strategies to settle the argument. Required: Discuss the key characteristics of active fund management and passive fund management, focusing on how the objectives of active management differ from those of passively managed funds.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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When you were at lunch, you overheard a heated conversation between two employees of
Big Rock. One was arguing a case for active fund management strategies and the other
was arguing a case for passive fund management strategies. They decide to get your
opinion on the two strategies to settle the argument.

Required: Discuss the key characteristics of active fund management and passive fund
management, focusing on how the objectives of active management differ from those of
passively managed funds.

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