Which of the following are advantages of the buy and hold strategy?
I. rapid accumulation of wealth
II. low transaction costs
III. capital gains taxed at the long-term rate
IV. portfolio requires less time and energy to manage than for most other strategies
A) I and II only
B) II and III only
C) II, III and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

The buy and hold strategy is known for low transaction costs, capital gains being taxed at the long-term rate, and requiring less time and energy to manage the portfolio. Rapid accumulation of wealth is not guaranteed with this strategy.

Which of the Following Are Advantages of the Buy and Hold