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Answer ALL questions. QUESTION 1 [20 MARKS] Differentiate between passive and active portfolio management based on (a) Buy an

Portfolio management

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A. Buy and hold strategies are often adopted by passive fund manages where once they look for value and if they buy at that value, they hold for long periods while active fund managers once buy and then if prices goes down , buys more and sell them once the gain is realised. They are not much keen on holding onto the stocks.

B. Speculative Investment strategies are often adopted by the active fund managers where they look forward by speculation in derivative market.they look to multiply their gains always . while passive investors are not interested in speculation through derivatives.

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