A Passive Asset Allocation Strategy Involves ________

question 70

Multiple Choice

A passive asset allocation strategy involves ________.

• A) investing in the stock of companies that 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

---

Definitions:

Marking

The process of assessing students' work and providing grades or feedback.

Highlighting

The act of marking or emphasizing text or elements in a document or image to make them more noticeable or to prioritize them.

Annotating

The act of adding explanatory notes or comments to a text, enhancing understanding and facilitating further analysis.

Adjustments

Changes made to correct or adapt something to achieve a desired state or outcome.