With a passive strategy i believe you need to be

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: With a passive strategy I believe you need to be trading for a long period of time; allowing the markets to fluctuate and hopefully end will positive returns. With a short time period, 3 month like we have, an active approach is a much better strategy to get the highest amount of return. Unsystematic risk is very unpredictable and can change the rate of return very quickly in a portfolio. With an active approach you are more likely to be able to avoid a drastic decline in the rate of return because you are constantly trading and you would trade a stock as soon as it starts to or has the potential to decline in value....
View Full Document

Ask a homework question - tutors are online