The Passive Investment Strategy Does Not Try to Find Undervalued

question 5

Multiple Choice

The passive investment strategy does not try to find undervalued stocks nor time the market.Instead,it is concerned with:

• A)achieving returns available in various market sectors at minimum risk.
• B)achieving maximum returns available in various market sectors.
• C)achieving minimum risk in various market sectors.
• D)achieving returns available in various market sectors at minimum cost.

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Definitions:

Constructive Receipt

This refers to the point at which an individual has access to, or control over, income, thus making it taxable, even if the income has not been physically received.

Compensation

Payment or salary received for services rendered or work done.

Exempt From Income

Income that is not subject to taxation under federal or state law.

Workers' Compensation Payments

Benefits provided to employees suffering from work-related injuries or illnesses, covering medical expenses and lost wages.