Those portfolio managers who follow an indexing strategy are said to be "index huggers." Why?

What will be an ideal response?


An "index hugger" refers to a managed mutual fund that tends to perform much like
a benchmark index. Thus, any portfolio managing using an index strategy can be called an index hugger. The majority of actively managed funds are expected to outperform the so-called average performance produced by passively managed index funds. Investors pay fund investment managers higher fees to do better than index funds, although managers often fail to outperform the index. A high R-squared factor, a mutual fund risk analysis measure, between 85 and 100 indicates that a managed fund's performance patterns are in line with the fund's benchmark index. If this is the case, investors may be better off investing in the index itself, which has lower portfolio turnover and lower expense ratio features. Thus, being an "index hugger" may be advantageous.

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Answer the following statements true (T) or false (F)

1. If a marketing person reports to both the vice president of marketing and also to the project manager for the Ford Mustang, she works in a network organization.  2. A functionally organized company can also use cross-functional teams to work on particular problems.  3. A hollow structure is often called a network structure.  4. Bombardier builds eight-passenger business jets from 12 separately sourced portions which can be put together in four days. This firm has a modular organizational structure. 

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Convenience samples are appropriate to use with exploratory research

Indicate whether the statement is true or false

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The definition of the credit terms of 2/eom, n/60 is:

a. 2% discount if paid within 60 days after the end of the month. b. 2% discount if paid within 60 days. c. 2% discount if paid before the end of the month. d. 2% discount if paid at the time of purchase.

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You are least likely to favor added points over a higher contract rate if you are

A) likely to move in a few years. B) a high income individual. C) likely to remain in the home for the duration of the mortgage. D) a low income individual.

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