Which of the following is the technique employed by a passive portfolio management strategy?
A) Quantitative screens
B) Full replication
C) Use of factor models
D) Sector rotation
E) None of the above

Question

Quizplus · Accepted Answer

Full replication is the technique employed by a passive portfolio management strategy. This involves holding all securities in the benchmark index in the same proportion as the index. Quantitative screens and factor models are used in active portfolio management strategies, while sector rotation involves actively shifting the portfolio among different sectors to try and outperform the benchmark.

Which of the Following Is the Technique Employed by a Passive