One of the most important decisions each investor must make is whether to take an active approach or a passive approach to investing. All of the following are true regarding the passive and active strategies except:

Group of answer choices

A passive investor can simply follow a buy-and-hold strategy.

The biggest risk of market timing is that investors will not be in the market at critical times, thereby significantly reducing their overall returns.

Expenses for an index ETF are typically lower than those for an index fund, and shares can be bought and sold at the net asset value (NAV) when the market is closed.

Passive strategies simply aim to do as well as the market.

Active investors are engaged in security selection, sector analysis, and market timing.