Indexing is most closely associated with... a) top-down investing. b) bottom-up investing. c) active management. d)...

Indexing is most closely associated with...

a) top-down investing.
b) bottom-up investing.
c) active management.
d) passive management.

Expert Solution

The correct answer is Option (D) Passive Management

Indexing is used as a statistical measure to track the economic data in the financial market. It is known for passive investment strategy to gain the targeted exposure to a specified market segment. So, It is closely associated with the passive management.

The active traders do not beat the index benchmarks in majority of the cases.

jeff jeffy answered 2 years ago

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