SIE practice questionmediumUITs
Which statement best describes the management of a Unit Investment Trust (UIT)?
- AIt is passively managed with no ongoing portfolio changes✓ Correct answer
- BIt is actively managed by a professional
- CIt allows for daily investment adjustments
- DIt regularly issues new units based on demand
Explanation
Why A — It is passively managed with no ongoing portfolio changes
A is correct; UITs are passively managed, holding fixed portfolios. B and C are features of active management. D is not a UIT characteristic—units are issued at formation.
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