Which of the following does not approximate the performance of a buy-and-hold portfolio strategy?
A) an equally weighted index
B) a price-weighted index
C) a value-weighted index
D) all of these options (Weights are not a factor in this situation.)

Question

Quizplus · Accepted Answer

An equally weighted index does not approximate a buy-and-hold strategy because it requires periodic rebalancing to maintain equal weights, unlike a buy-and-hold strategy which does not involve rebalancing.

Which of the Following Does Not Approximate the Performance of a Buy-And-Hold