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Which of the following arguments supporting passive investment strategies is (are) correct?
I. Active trading strategies may not guarantee higher returns but guarantee higher costs.
II. Passive investors can free-ride on the activity of knowledge investors whose trades force prices to reflect currently available information.
III. Passive investors are guaranteed to earn higher rates of return than active investors over sufficiently long time horizons.

Respuesta :

aozorarose

Answer: III

Explanation:

The key in passive investment strategy is long-term investment horizons that are succeeding with the strategy of buy and hold portfolio.

This kind of investment is achieved with minimal trading in the market. It's cheaper and less complex. A passive investing strategy is maximizing returns and minimize buying.

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