Passive 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

Passive portfolio management involves creating a portfolio that tracks a market benchmark, such as the S&P 500, rather than trying to outperform the market through market timing or security analysis. Indexing involves buying and holding a diversified portfolio of securities that mirrors the composition of the benchmark index, providing broad market exposure and minimizing trading costs.

Passive Portfolio Management Consists of __________