Which of the Following Is a Disadvantage of Market Timing

question 55

Multiple Choice

Which of the following is a disadvantage of market timing?

• A) It requires investors to make frequent trades.
• B) It has steady but very low returns because the investments are low-risk.
• C) It lets investors take away bigger earnings than brokers.
• D) It is time-consuming as the stockholders have to wait for the market situation to be profitable.

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Definitions:

Matrix Structures

An organizational structure that creates project-based teams from different departments for more dynamic and flexible operations.

Divisional Structure

An organizational structure that groups departments based on similar products, services, customers, or geographic locations.

Functional Structure

This organizational structure groups employees based on their job functions, allowing for specialization and efficiencies within departments but can also lead to silos of communication.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the work of an organization.