Below are valid statements about institutional investors. Classify each statement as

reflecting "active" or "passive" investment behavior:

$($i$)$ "Most Exchange Traded Funds $($ETFs$)$ are designed to replicate the strategy of a

pre$-$specified benchmark index"

$($ii$)$ "Many Mutual Funds specialize in picking stocks with low price relative to their

fundamental value"

$($iii$)$ "The portfolio composition of a typical Unit Investment Trust $($UIT$)$ is fixed and

specified at the fund's inception"

$($iv$)$ "Some Hedge Funds rely on advanced quantitative analysis to identify good in$-$

vestment opportunities in financial markets"

A$.($i$)$ Passive; $($ii$)$ Passive; $($iii$)$ Passive; $($iv$)$ Active

B$.($i$)$ Active; $($ii$)$ Active; $($iii$)$ Passive; $($iv$)$ Active

C$.($i$)$ Passive; $($ii$)$ Active; $($iii$)$ Passive; $($iv$)$ Active

D$.($i$)$ Passive; $($ii$)$ Active; $($iii$)$ Active; $($iv$)$ Passive

Which of the following is an example of an agent operating in the demand of capital

side of the economy?

A$.$ A firm selling new equity shares to raise capital

B$.$ A household investing for retirement

C$.$ A mutual fund manager relying on fundamental analysis to identify good stocks

to invest in

D$.$ A consumer buying groceries with cash