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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.


Definitions:

Paternalistic Nature

An approach or attitude in management in which an entity controls the needs of people in a manner similar to a father's relationship with his children, often by providing for them without giving them rights or responsibilities.

Employee Voice

The means by which workers express their opinions, grievances, and suggestions regarding workplace policies and practices.

Steel Industry

A sector of the economy focused on the production, processing, and sale of steel and steel products.

Unionize

The act of forming or joining a union to collectively bargain for improved working conditions, wages, and benefits.

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