Question

The investment approach of one of TIAA-CREF's mutual funds is: "[This fund]. . .seeks a favorable long-term rate of return from a diversified portfolio selected to track the overall market for common stocks publicly traded in the United States, as represented by a broad stock market index." This fund is a(n):________. a) market fund. b) asset fund. c) passive fund. d) active fund.

Answer 1

c) passive fund.

Step-by-step explanation:

The passive fund seeks a favorable long-term rate of return from a diversified portfolio selected to track the overall market for common stocks publicly traded in the United States, as represented by a broad stock market index.

It is a variable annuity investment approach of TIAA-CREF mutual funds that focuses on equity and with the objective of blending broad market.