Question

Which action is an investor most likely taking with a previously acquired asset when the investor knows that the value is steadily increasing?
A.
buying
B.
holding
C.
selling
D.
speculating
E.
trading

Answer 1

Answer:

B:

The investor will hold the investment.

Step-by-step explanation:

Option A - Buying:

The investors with active approach are the value investors who purchase assets with low prices relative to their book values.

Option B - Holding

The investors with passive approach are the most common one, they tend to buy and hold assets and may optimise their allocation weights to certain asset classes based on rules.

Option C - Selling

Investors sell the asset, if it's value decrease or reach its maximum amount.

Option D - Speculating

Investors speculate, when they are uncertain.

Option E - Trading

They do so when they buy common classes of assets and try to maintain their investment portfolios.