Which description best defines index management?

• A. An investment style characterised as owning the overall market and generally owning the constituents of an index such as the S&P500 or the MSCI EAFE index.
• B. An approach focused on selecting individual securities to beat the benchmark.
• C. A risk-management technique for hedging portfolios with options.
• D. A short-term trading strategy based on momentum.

Answer: (A)