In the Context of the Various Strategies for Investing in Securities

question 129

Multiple Choice

In the context of the various strategies for investing in securities, the problem with market timing is that:

• A) it is tough to consistently identify the timing and direction of changes in stock prices.
• B) the returns are very low because stockholders invest in low-risk securities.
• C) stockholders are required to purchase securities and hold them for a long period of time.
• D) intensive research is required to find stocks that are undervalued in the market.