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Which of the Following Are Correct Arguments Supporting Passive Investment

question 24

Multiple Choice

Which of the following are correct arguments supporting passive investment strategies?
I.Active trading strategies may not guarantee higher returns but guarantee higher costs
II.Passive investors can free ride on the activity of knowledge investors whose trades force prices to reflect currently available information
III.Passive investors are guaranteed to earn higher rates of return than active investors over sufficiently long time horizons


Definitions:

Informal Relations

Interactions and connections between individuals or groups that are not governed by formal rules, structures, or procedures, often based on personal or community ties.

Keynesian Economics

An economic theory proposed by John Maynard Keynes, suggesting that government intervention through public policies can influence macroeconomic productivity and stabilize economies.

Neoliberalism

An ideology and policy model emphasizing free-market capitalism, deregulation, and reduction in government spending.

Global Economy

An interconnected world economic system in which goods, services, and labor move across national boundaries with minimal restriction.

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