An active strategy utilized for common stocks

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Reference no: EM131189218

a. involves less diversifiable risk than an index fund.

b. involves a lower cost of paying the forecasters either in form of salaries or in the management fees than a passive strategy.

c. requires higher turnover as opposed to the very low turnover of the buy and hold strategies of an index fund.

d. requires lower transaction cost as compared to passive management.

Reference no: EM131189218

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