Which of the Following Statements Regarding a Buy and Hold

question 46

Multiple Choice

Which of the following statements regarding a buy and hold strategy are true?

• A)There are no selection choices to be made under this strategy.
• B)This strategy is applicable only to large portfolios.
• C)There is no reinvestment decision to make under this strategy.
• D)This strategy produces lower transactions and search costs.

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Definitions:

Deficit

The amount by which expenses exceed income or costs outstrip revenues, typically referring to governmental budgeting.

British Importer

A company or individual in the UK that buys goods from foreign countries to sell in the domestic market.

American Wheat

A term referring to wheat produced in the United States, which is a major global exporter of the grain.

Euro

Nineteen of the twenty-seven member states in the European Union use a standard currency, often called the eurozone.