Active portfolio management consists of
A)market timing.
B)security analysis.
C)indexing.
D)market timing and security analysis.

Question

Quizplus · Accepted Answer

Active portfolio management involves both market timing and security analysis in order to identify undervalued securities and take advantage of market fluctuations. While indexing involves creating a portfolio that mirrors a specific market index, active management aims to outperform the market through strategic buying and selling of securities. Therefore, the best choice is D, market timing and security analysis.

Active Portfolio Management Consists of