Question

A hybrid strategy is one where the investor...

A. uses both fundamental and technical analysis to select stocks.
B. selects the stocks of companies that specialize in alternative fuels.
C. selects some actively-managed mutual funds on their own and uses an investment advisor to select other actively-managed funds.
D. maintains a passive core and augments the position with an actively managed portfolio.
E. none of the above.

Answer 1

Answer: The correct answer is "D. maintains a passive core and augments the position with an actively managed portfolio.".

Explanation: A hybrid strategy is one where the investor maintains a passive core and augments the position with an actively managed portfolio because it maintains a passive core but in turn manages the position by actively managing a portfolio.