A Purely Passive Strategy Is Defined as

question 39

Multiple Choice

A purely passive strategy is defined as

• A)one that uses only index funds.
• B)one that allocates assets in fixed proportions that do not vary with market conditions.
• C)one that is mean-variance efficient.
• D)one that uses only index funds and allocates assets in fixed proportions that do not vary with market conditions.

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Definitions:

Wage Rate

The amount of money paid to an employee per unit of time or output, typically expressed per hour or piece.

Competitive Output Market

A market structure characterized by many producers supplying homogeneous products, where no single producer can influence the market price.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor, in the production process.

Labor Supply Curve

A visual diagram that illustrates the connection between the amount of wages and the volume of labor that employees are prepared to offer.