In an active management strategy, the composition of the portfolio is
A) Stable
B) Dynamic
C) Determined in advance and never changed
D) Very seldomly revised
E) Benchmark indexed

Question

Quizplus · Accepted Answer

In an active management strategy, the portfolio composition is dynamic, meaning it is constantly changing as the fund manager seeks to identify opportunities for better returns. This is in contrast to a stable or predetermined portfolio composition as in options A, C, D, and E, or a benchmark-indexed strategy as in option E.

In an Active Management Strategy, the Composition of the Portfolio