A Purely Passive Strategy Is Defined as

question 27

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 the above.

---

Definitions:

Expectancy Theory

A motivational theory suggesting that people will choose how to behave based on their expectations that certain actions will lead to desired outcomes.

Motivational Perspective

An approach focusing on understanding what drives people to achieve goals, perform tasks, and engage in behaviors.

Staffing Process

The series of steps an organization follows to attract, select, train, and retain employees.

Abilities Fit

The degree to which an individual’s capabilities, strengths, and skills align with their job requirements or organizational roles.