An example of a portfolio manager practicing active management would be one of:

• A. A belief that by superior research, he or she can select stocks (as a stock picker) that produce superior returns over time.
• B. Being actively engaged with political leaders and legislators to influence political and economic policy decisions that help the stock market grow.
• C. Also known as index management, whereby the manager actively seeks to mirror the overall economy of a country, region or sector.
• D. A strategy that mirrors a market index with minimal trading.

Answer: (A)