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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:

Perceptual System

The complex network of sensory organs and brain structures involved in processing and interpreting sensory information to form a coherent view of the environment.

Primary Visual Cortex

The region of the cerebral cortex that receives, integrates, and processes visual information relayed from the eyes, serving as a primary area for visual perception.

Visual Agnosia

A neurological disorder characterized by the inability to recognize or make sense of visual objects despite having normal eyesight.

Ventral Stream

Refers to a pathway in the brain that processes visual information about the shape and color of objects.

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