A purely passive strategy is defined as
A) one that uses only index funds.
B) one that allocates assets in fixed proportions that do not vary with market conditions.
C) one that is mean-variance efficient.
D) one that uses only index funds and allocates assets in fixed proportions that do not vary with market conditions.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

A purely passive strategy involves both using only index funds and allocating assets in fixed proportions that do not vary with market conditions, as described in option D.

A Purely Passive Strategy Is Defined as