Which of the Following Arguments Supporting Passive Investment Strategies Is

question 65

Multiple Choice

Which of the following arguments supporting passive investment strategies is (are) correct?
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.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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Definitions:

Corporate Customer

A business entity or organization that purchases goods or services for business use rather than for individual or personal use.

Salesperson's Contact

A sales strategy involving direct communication and personal interaction between a salesperson and a prospective or current customer.

Prospect

A potential customer or client who has been identified as fitting a certain criteria that may lead to them purchasing a product or service.

Repeat Corporate Customers

Repeat corporate customers are businesses that repeatedly purchase goods or services from the same supplier, demonstrating loyalty and ongoing business relationships.