Which of the following statements regarding a buy and hold strategy are true?
A)There are no selection choices to be made under this strategy.
B)This strategy is applicable only to large portfolios.
C)There is no reinvestment decision to make under this strategy.
D)This strategy produces lower transactions and search costs.

Question

Quizplus · Accepted Answer

A buy and hold strategy involves purchasing securities and holding them for a long period, which results in lower transaction and search costs due to infrequent trading.

Which of the Following Statements Regarding a Buy and Hold