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 ____.

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