Asked by
Sarah Leblanc
on Dec 04, 2024Verified
Which of the following does not approximate the performance of a buy-and-hold portfolio strategy?
A) an equally weighted index
B) a price-weighted index
C) a value-weighted index
D) all of these options (Weights are not a factor in this situation.)
Buy-And-Hold
An investment strategy where securities are purchased and held for a long period to mitigate the effects of market volatility.
Equally Weighted
A type of investment strategy where each asset in a portfolio is given the same investment weight regardless of its size, market capitalization, or other characteristics.
Value-Weighted
A method of calculating a stock index where each stock affects the index in proportion to its market value.
- Acquire knowledge on the foundations of financial instruments and market indices.
Verified Answer
JR
Learning Objectives
- Acquire knowledge on the foundations of financial instruments and market indices.