A Passive Asset Allocation Strategy Involves _________

question 34

Multiple Choice

A passive asset allocation strategy involves _________.

• A) investing in the stock of companies which are price takers
• B) maintaining approximately the same proportions of a portfolio in each asset-class over time
• C) varying the proportions of a portfolio in each asset-class in response to changing market conditions
• D) selecting individual securities in different sectors that are believed to be undervalued

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Definitions:

Stroma

The supportive tissue framework of an organ, or the dense fluid within chloroplasts where the Calvin cycle occurs in photosynthesis.

Chloroplast

An organelle found in plant and algal cells that conducts photosynthesis, converting light energy into chemical energy stored in glucose.

ATP Synthase Complex

An enzyme complex that synthesizes ATP, the cell's energy currency, using a proton gradient across the membrane.

Cellular Respiration

A metabolic process that converts glucose into ATP, releasing energy for cellular processes, occurring in the mitochondria of cells.