James and Sarah, a married couple of are looking at investing some of their money in the stock market. James has a list of fifteen stocks he think can generate high returns. He wants to trade stocks aggressively when opportunities present themselves. Sarah says that she would prefer investing the money in the S&P 500 etf and holding it.

1. Sarah’s strategy would best be described as a

A. Active strategy

B. Market timing strategy

C. Passive strategy

D. None of the above

2. Which is the advantage of Sarah’s strategy:

A. Lower trading costs

B. Lower fees

C. Diversification

D. All of the above