An Active Strategy Utilized for Common Stocks

question 6

Multiple Choice

An active strategy utilized for common stocks

• A) involves less diversifiable risk than an index fund.
• B) involves a lower cost of paying the forecasters either in form of salaries or in the management fees than a passive strategy.
• C) requires higher turnover as opposed to the very low turnover of the buy and hold strategies of an index fund.
• D) requires lower transaction cost as compared to passive management.

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Definitions:

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Marcia’s term for the status of individuals who have made a commitment but have not experienced a crisis.

Career

A career encompasses an individual's journey through learning, work, and other aspects of life, often related to their profession or occupation.

Lena

A given name, which could refer to various notable individuals or characters, depending on the context.

Minister

An official in charge of a government department or a member of the clergy who leads a congregation or officiates at ceremonies.