A purely passive strategy is defined as
A)one that uses only index funds.
B)one that allocates assets in fixed proportions that do not vary with market conditions.
C)one that is mean-variance efficient.
D)both A and B.
E)all of the above.

Question

Quizplus · Accepted Answer

A purely passive strategy involves using index funds (A) and maintaining fixed asset allocations regardless of market conditions (B).

A Purely Passive Strategy Is Defined as