A Buy-And-Hold Strategy

question 57

Multiple Choice

A buy-and-hold strategy:

• A) typically earns higher returns,after expenses,than an active stock picking strategy.
• B) always earns the lowest returns.
• C) always have the lowest risk.
• D) typically outperforms most market indexes.

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Definitions:

Fixed Asset

Long-term tangible property owned by a business that is used in its operations and not expected to be converted to cash in the short term.

Market Value

The current price at which an asset or service can be bought or sold, often determined by supply and demand in the marketplace.

Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at a specific point in time.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.