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....
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This document was uploaded on 03/05/2014 for the course FMIS 3644 at University of Minnesota Duluth.
- Spring '14