Which of the following is considered a passive management strategy?

Question

Quizplus · Accepted Answer

Sampling is considered a passive management strategy as it involves tracking a benchmark index and picking a representative sample of securities to minimize tracking error. Sector rotation, use of factor models, quantitative screens, and linear programming all involve active management strategies where the portfolio manager is actively making decisions to outperform the benchmark index.

Which of the Following Is Considered a Passive Management Strategy