A Common Strategy for Passive Management Is ____________

question 45

Multiple Choice

A common strategy for passive management is ____________.

• A)creating an index fund
• B)creating a small firm fund
• C)creating an investment club
• D)A and C
• E)B and C

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Definitions:

Hedge

A strategy used in investing to minimize or offset the risk of adverse price movements in an asset.

Hedge Position

An investment made to reduce the risk of adverse price movements in an asset, often by taking an offsetting position in a related security.

Market Price

The market price is the current price at which an asset or service can be bought or sold.

American Call Option

A type of options contract that allows the holder to buy a specified amount of an underlying asset at a set price before the contract expires.