Financial Planner

Answer: D - Investors that do not believe that active management adds any additional returns to their portfolios practice a buy and hold investment strategy. These investors hold on to their securities to minimize transaction costs. For bond investing, investors look for vehicles whose maturities approximate their stipulated investment horizon in order to reduce price and reinvestment risk. The buy-and -hold strategy should not be confused with a passive strategy, for buy-and-hold strategy does not rebalance portfolios as passive strategies do.