What are the major arguments for investing actively? List and comment on more than one.

Question

Question

Answer 1

Answer #1

Major arguments for active investing:
The active investment strategy mainly focuses on finding Alpha and investing in it.

Alpha means excess returns over the market returns.

It is achieved by actively researching the companies which have more Expected Returns than Required Returns.

Active Investing argues that markets are weakly efficient.

Active Investment also argues that the market can be timed.

It can be achieved by increasing the beta of the portfolio when markets are expected to rise and vice versa.

It can also be achieved by lending or borrowing at the risk-free rate.

Answer 2

Similar Homework Help Questions

: List major evidence of global climate change and its impact in one/or more than one...

: List major evidence of global climate change and its impact in one/or more than one of the following areas: a) ocean temperature and its ecology. b) polar ice cap condition and sea level change. c) sever weather patterns. d) shortage of food/fresh water supply.
Arguments are tools. What is one major difference between arguments (viewed as tools) and other tools...

Arguments are tools. What is one major difference between arguments (viewed as tools) and other tools such as hand-held media devices, computers, laptops, automobiles, light-switches, toaster-ovens, plasma TVs, etc.? (Hint: do you have to understand how your Sony plasma works in order to use it?)
The _____ of arguments for a position is more important than their ______. (A) quantity, intuition...

The _____ of arguments for a position is more important than their ______. (A) quantity, intuition (B) quality, quantity (C) quality, force (D) quantity, feeling (E) objectivity, universality

Describe ONE of the major advantages of investing through an investment company such as a mutual...

Describe ONE of the major advantages of investing through an investment company such as a mutual fund, rather than buying a portfolio of stocks and bonds that you select yourself.
List 3 arguments for; and 3 arguments agains for each one of those . 1- gym...

List 3 arguments for; and 3 arguments agains for each one of those . 1- gym classes should not be co-ed. 2- the state should allow 15 years old to be fully licensed. 3- hats should be allowed in school. 4- retired people should have a 20% price reducation on everything they buy .
Draw the major organic products of the reaction. (Hint: might there be more than one product?...

Draw the major organic products of the reaction. (Hint: might there be more than one product? Will it be only substitution, only elimination, or some of each?) Indicate the stereochemistry, including H's, at each stereocenter. Omit byproducts such as salts or methanol. If there is more than one alkene that can form, only draw one of them, the one that forms to greater extent. CH3ONa CH3OH 1111

if there is more than one major product, please clearly draw both. thank you! a. b....

if there is more than one major product, please clearly draw both. thank you! a. b. c.
Write a sql query that returns Which states have more than one customer? List the states and the ...

write a sql query that returns Which states have more than one customer? List the states and the number of customers for those states. The list must not include the states that do not have more than one customer. CUSTOMER_T CustomerName, Street, City, State, Zip,
Draw the major products for the following reactions. If more than one product is formed equally...

Draw the major products for the following reactions. If more than one product is formed equally draw both, HgSO4 HBr HOOH Brz 1) NaNH, 2) CH,CH,CH,Br

Predict the major products of dehydration catalyzed by sulfuric acid. If more than one diastereomer will...

Predict the major products of dehydration catalyzed by sulfuric acid. If more than one diastereomer will form, draw BOTH diastereomers. a. hexan-2-ol b. pentan-3-ol c. cyclopentylmethanol