September 2020

Discussion in 'SP5' started by rlsrachaellouisesmith, Sep 1, 2023.

  1. rlsrachaellouisesmith

    rlsrachaellouisesmith Ton up Member

    Hi

    In Q2 in the mark scheme it states that the degree to which an active/passive approach may be successful will depend on the transparency of the bonds invested in, presumably the more transparent, the more efficient the market and therefore the more effective a passive approach would be. Is that correct?

    Thank you
     
  2. Colin McKee

    Colin McKee ActEd Tutor Staff Member

    Yes - its a funny word to use: "transparent". But I think it just means efficient. So illiquid bonds would be less transparent.
     
    rlsrachaellouisesmith likes this.

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