Which total-return mandate approach seeks to generate active returns of between 20 to 30 bps/year? A. Pure indexing. B. Enhanced indexing. C. Active Management.

The correct answer is Option B.Enhanced indexing seeks modest (20-30 bps) outperformance of the benchmark while active risk is kept low. Active management seeks outperformance greater than 50 bps per year.

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This topic has 1 reply, 1 voice, and was last updated Apr-206:36 am by MarkMeldrum.

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- MarkMeldrum
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  20 Apr 2020 at 8:41 pm
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  Which total-return mandate approach seeks to generate active returns of between 20 to 30 bps/year?
  - A. Pure indexing.
  - B. Enhanced indexing.
  - C. Active Management.
- MarkMeldrum
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  - Undecided
  24 Apr 2020 at 6:36 am
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  The correct answer is Option B.
  
  Enhanced indexing seeks modest (20-30 bps) outperformance of the benchmark while active risk is kept low. Active management seeks outperformance greater than 50 bps per year.
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