Investing in a bond index portfolio is an example of a(n)____ approach. Investing in an equity portfolio that mirrors the stock market is an example of a(n)____ approach.
A)passive; active
B)active; active
C)active; passive
D)passive; passive

Question

Quizplus · Accepted Answer

Investing in a bond index portfolio and an equity portfolio that mirrors the stock market are both examples of passive investing because the goal is to replicate the performance of a market index rather than outperform it through selecting individual securities.

Investing in a Bond Index Portfolio Is an Example of A(n)____