A Purely Passive Strategy Is Defined as

question 6

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.
• E) All of the options are correct.

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Definitions:

Ego

In psychoanalytic theory, a component of the personality that is responsible for dealing with reality while working to satisfy the demands of both the id and the superego, in a more general sense, often used to refer to a sense of self-esteem or self-importance.

Philosophical Behaviorism

A theory in philosophy of mind that asserts thoughts, feelings, and intentions can be fully described by observable behaviors and physical processes, without reference to inner mental states.

Sensations

Immediate physical experiences or perceptions through the senses.

Functionalists

Scholars or theorists who analyze society, its entities, and phenomena based on the functions they perform in maintaining the social system.