________ portfolio management calls for holding diversified portfolios without spending effort or resources attempting to improve investment performance through security analysis.

Question

Quizplus · Accepted Answer

Passive portfolio management, also known as index fund investing, involves holding a diversified portfolio that mirrors a market index (such as the S&P 500) without any attempt to beat the market through security analysis or timing. The goal is to achieve returns similar to the overall market while minimizing fees and transaction costs.

________ Portfolio Management Calls for Holding Diversified Portfolios Without Spending