Which of the following are advantages of the buy and hold strategy?
I. rapid accumulation of wealth
II. low transaction costs
III. capital gains taxed at the long-term rate
IV. Portfolio requires less time and energy to manage than for most other strategies.

Question

Quizplus · Accepted Answer

Advantages of the buy and hold strategy include low transaction costs, capital gains taxed at the long-term rate, and the portfolio requiring less time and energy to manage compared to other strategies. However, rapid accumulation of wealth is not necessarily a guaranteed advantage of buy and hold as it depends on the performance of the specific investments held. Therefore, options A and D are incorrect. Option B is incorrect as it only includes two out of the three correct advantages. Option C is the best choice as it includes all three correct advantages of the buy and hold strategy.

Which of the Following Are Advantages of the Buy and Hold