Rethinking the active-passive divide

Multiple-choice questions. In order to be awarded CPD units you must answer the following five random questions correctly. If you fail the test, please reread the article before attempting the questions again.

  1. Which type of indexing allows investors to curate personal portfolios?

  2. When did passive management first become popularised?

  3. Which of the following statements is true? Statement 1, with smart beta funds, the value factor considers book-to-price ratios, or statement 2, with smart beta funds, the value factor examines returns on equity

  4. According to the CFA Institute, what proportion of global fund net assets come from exchange-traded funds and equity index funds?

  5. How can a smart beta fund be described?

1 Unit