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.

---

Definitions:

Autism Spectrum Disorder

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, and speech and nonverbal communication.

Aversive Conditioning

A form of behavioral training where a negative stimulus is associated with undesirable behaviors to reduce or eliminate those behaviors.

Cognitive Therapies

A group of psychotherapies that focus on changing maladaptive thinking patterns to improve emotional regulation and develop personal coping strategies.

Behavior Modification

Techniques or therapies applied to change undesirable behaviors by using the principles of learning theory.