You actively research macroeconomic factors and move between stocks and bonds in an attempt to time...
You actively research macroeconomic factors and move between
stocks and bonds in an attempt to time the market. Your allocation
is in stock and bond index funds. You have a(n) _____ asset
allocation strategy and a(n) _____ security selection
strategy.
active; active
active; passive
passive; passive
passive; active
None of the above.
Homework Answers
Here since you are trying to research macroeconomic factors and move between stocks and bonds to time the market so your strategy is active asset allocation but since you are choosing to invest in indexed funds so your security selection is passive.
So, the correct answer is
Active, Passive
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