Which investment description matches Buy and Hold: The strategy in which the stock portion of one's portfolio is fully invested, including dividend reinvestments, at all times?

• A. Dollar-cost averaging
• B. Growth at a discount
• C. Market timing
• D. Buy and Hold

Answer: (D)

The idea being tested is Buy and Hold, which means keeping the stock portion of the portfolio fully invested at all times and reinvesting any dividends to compound growth. This approach focuses on long-term ownership and letting returns accumulate without trying to time the market or leave cash idle. Because the description specifies that the stock portion remains fully invested and dividends are reinvested, it aligns exactly with Buy and Hold.

Dollar-cost averaging involves spreading purchases over time, which may leave portions of the portfolio not invested at any moment, so it doesn’t require staying fully invested all the time. Market timing centers on moving in and out based on market conditions, which contradicts maintaining a constant, fully invested stock position. Growth at a discount is a stock-picking philosophy, not a directive about keeping the portfolio’s stock portion invested and reinvesting dividends.