A Purely Passive Strategy Is Defined as

question 37

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) both a and b.
• E) all of these.

---

Definitions:

Investment Turnover

A measure of a company’s efficiency in using its assets to generate sales or revenue, indicating how quickly investments are converted into income.

Profit Margins

A financial metric that assesses the percentage of profit made from sales after all expenses have been deducted.

Return on Investment

A measure of the profitability of an investment, calculated by dividing the net gains from the investment by its cost.

Investment Turnover

A ratio measuring how efficiently a company generates sales from its inventory investments.