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:

Criticisms

The practice of analyzing, evaluating, or judging the merits and faults of something or someone.

Cultural Environment

The collective cultural influences that surround and impact an individual or community, including norms, values, practices, and institutions.

Self-Recognition

The ability to recognize oneself, often demonstrated through the identification of one’s reflection in a mirror.

Infants

Young babies, typically from birth to one year old, who are in the earliest stage of human development.