The least expensive portfolio management strategy, in terms of cash costs, is
A) the minimum variance portfolio
B) the undiversified portfolio
C) the buy and hold portfolio
D) the capital appreciation portfolio

Question

Quizplus · Accepted Answer

The buy and hold portfolio strategy is the least expensive in terms of cash costs because it involves minimal transaction fees and taxes due to its low turnover. Investors simply buy securities and hold them for a long period, avoiding the costs associated with frequent buying and selling.

The Least Expensive Portfolio Management Strategy, in Terms of Cash