An investor who follows a fully active strategy will:
A)move money between asset classes as well as try to select the best performers in each class.
B)move money between asset classes but will not be concerned about which individual securities are owned.
C)focus on picking individual stocks only.
D)maintain a relatively constant mix of asset classes while continually buying and selling individual securities.
E)concentrate solely on asset allocation to maximize potential returns.

Question

Quizplus · Accepted Answer

An investor who follows a fully active strategy will not only move money between asset classes but will also try to select the best performers in each class. They will frequently buy and sell individual securities with the goal of achieving market-beating returns. Overall, the strategy aims to outperform the market through a combination of asset allocation and individual security selection.

An Investor Who Follows a Fully Active Strategy Will