Which of the following is an example of a passive investment strategy?

A) market timing
B) riding the yield curve
C) bond swapping
D) diversification

Question

Which of the following is an example of a passive investment strategy?

A) market timing
B) riding the yield curve
C) bond swapping
D) diversification

Quizplus · Accepted Answer

A passive management approach involves the selection of a combination of securities that are held for the medium to long term.Often this strategy is referred to as buy-and-hold,and the initial decision on portfolio composition may be made on the basis of diversification principles.The portfolio is periodically reviewed and rebalanced in line with price movements.

Which of the Following Is an Example of a Passive