Active portfolio management consists of __________.
A)market timing
B)security analysis
C)indexing
D)A and B
E)none of the above

Question

Quizplus · Accepted Answer

Active portfolio management involves both market timing and security analysis. Market timing involves predicting the overall movements of the market and adjusting the portfolio accordingly, while security analysis involves analyzing individual stocks or bonds in order to select the best investments. Indexing, on the other hand, involves simply tracking the performance of a market index and does not involve active decision-making. Therefore, options A and B are both included in active portfolio management, while option C (indexing) is not.

Active Portfolio Management Consists of __________