Relative to the strategy of buying and then holding for long time, frequently buying and selling securities will result in all of the followings for sure EXCEPT ____. a. Group of answer choices b. greater commissions paid to security brokers c. greater taxes paid to the government d. greater returns for the investor e. greater bid-ask spreads paid to security dealers

Relative to the strategy of buying and then holding for long time, frequently buying and selling securities will result in all of the followings for sure EXCEPT ____. a. Group of answer choices b. greater commissions paid to security brokers c. greater taxes paid to the government d. greater returns for the investor e. greater bid-ask spreads paid to security dealers

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

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which is the correct answer and why? I think it's c. Relative to a passive investor who holds securities for a long time, all of the following statements about an active investor who frequently buys and sells securities are correct EXCEPT ____. Group of answer choices a. The active investor must pay greater total annual commission to security brokers b. The active investor must pay greater total annual tax to the government c. The active investor must earn greater net annual investment return, where net return is defines as return net of various transaction costs, fees and taxes d. The active investor must pay greater total annual bid-ask spread to security dealers
Relative to a passive investor who holds securities for a long time, all of the following statements about an active investor who frequently buys and sells securities are correct EXCEPT ____. Group of answer choices a:The active investor must pay greater total annual commission to security brokers b: The active investor must pay greater total annual tax to the government c: The active investor must earn greater net annual investment return, where net return is defines as return net of various transaction costs, fees and taxes d: The active investor must pay greater total annual bid-ask spread to security dealers
Relative to a passive investor who holds securities for a long time, all of the following statements about an active investor who frequently buys and sells securities are correct EXCEPT ____. Group of answer choices The active investor must pay greater total annual commission to security brokers The active investor must pay greater total annual tax to the government The active investor must earn greater net annual investment return, where net return is defines as return net of various transaction costs, fees and taxes The active investor must pay greater total annual bid-ask spread to security dealers
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