Which investment approach aims to outperform the market, usually at higher costs?

• A. Active Investing
• B. Market Index
• C. Expense Ratio
• D. Dollar-Cost Averaging

Answer: (A)

Active investing is the approach that tries to beat the market by selecting securities and timing trades in an effort to outperform a benchmark. This requires more research, analysis, and frequent trading, which drives higher costs and fees. That combination—seeking higher returns while accepting higher costs—fits the description in the question. In contrast, tracking a market index is a passive strategy meant to mirror performance with lower costs; the expense ratio is simply a fee, not a strategy; and dollar-cost averaging is about investing a fixed amount regularly, regardless of price, not specifically aiming to outperform the market.