An active investment strategy
A) implies that market prices are fairly set.
B) attempts to achieve returns greater than those commensurate with the risk borne.
C) attempts to achieve the proper return that is commensurate with the risk borne.
D) requires portfolio managers,while a passive investment strategy does not.
E) occurs when bond portfolio managers are hyperactive.

Question

Quizplus · Accepted Answer

An active investment strategy attempts to achieve returns greater than those commensurate with the risk borne by taking advantage of market inefficiencies and making investment decisions based on research and analysis. This differs from a passive investment strategy, which aims to match the performance of a designated index or benchmark rather than attempting to outperform it.

An Active Investment Strategy