Q. Which of the following is/are disadvantage(s) of indexing of bond portfolio? I. Advisory fee schedule is high II. In past, returns earned by most active fund managers has much exceeded those of index portfolio III. Loss of opportunity for incremental returns. (Solved)

1. Only (I) above

2. Only (II) above

3. Only (III) above

4. Both (II) and (III) above

  • c. Only (III) above
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