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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Related Investment Companies & Packaged Products questions