A strategy of passive management is one in which, once established, the portfolio is
A) Readjusted on a regular basis
B) Only readjusted if prices decline
C) Largely left alone
D) Only readjusted if prices rise
E) Readjusted at the manager's discretion

Question

Quizplus · Accepted Answer

A strategy of passive management involves investing in a diversified portfolio and largely leaving it alone for a long period of time. This approach is often used to match the performance of a market index or benchmark, rather than trying to beat it through active management. Therefore, the correct choice is C- largely left alone.

A Strategy of Passive Management Is One in Which, Once