An Investor Who Follows a Fully Active Strategy Will

question 24

Multiple Choice

An investor who follows a fully active strategy will:

• A)move money between asset classes as well as try to select the best performers in each class.
• B)move money between asset classes but will not be concerned about which individual securities are owned.
• C)focus on picking individual stocks only.
• D)maintain a relatively constant mix of asset classes while continually buying and selling individual securities.
• E)concentrate solely on asset allocation to maximize potential returns.

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Definitions:

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Sleep Disorders

Conditions that affect the quality, timing, or duration of sleep, leading to daytime distress and impairment in functioning.

Developmental Stages

The phases through which an individual progresses from infancy to maturity, encompassing physical, cognitive, and emotional growth.

Older Adulthood

A life stage characterized by advanced age, often associated with retirement, changes in physical health and social roles.