Which statement is TRUE regarding active investing?
A) Active investing typically has higher average returns than passive investing.
B) Active investing and passive investing typically have equal returns on average.
C) Active investments typically have higher fees and lower returns on average than passive investments.
D) Active investing has been shown to be the only type of investing that can consistently "beat the market."

Question

Quizplus · Accepted Answer

Active investments typically have higher fees due to the costs associated with research and analysis. However, studies have shown that on average, active investing does not outperform passive investing after taking into account fees and expenses. Therefore, passive investing may be a better option to minimize costs and maximize returns.

Which Statement Is TRUE Regarding Active Investing