QUESTION 22

1. The determination of the success of an active portfolio is:

   		a. Positive alpha/low R2.
   		b. Positive alpha/high R2.
   		c. Negative gamma/high R2.
   		d. High beta/low R2.

QUESTION 24

1. Which of the following is an advantage of an indexed equity mutual fund as compared to a managed equity fund?

   		a. Indexed funds have lower operating costs because of less stock trading.
   		b. Indexed funds generally have better portfolio managers.
   		c. Indexed funds engage in more research than managed funds.
   		d. Index funds generally have less systematic risk compared to actively managed equity funds.