A Market Timing Approach That Increases the Proportion of Funds

question 14

Multiple Choice

A market timing approach that increases the proportion of funds in stocks when the stock market is expected to rise, and increases cash when stocks are expected to fall is a:

• A) strategic asset allocation.
• B) tactical asset allocation.
• C) portfolio optimization.
• D) liquidity timing allocation.

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Definitions:

Surge Prices

A dynamic pricing strategy that increases prices in response to high demand and limited supply, commonly used in ride-sharing services.

Determinants of Market Demand

Factors that influence the total demand for a product or service in a market, including price, income levels, tastes, and population demographics.

Law of Demand

A principle that states there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.

Determinants of Market Demand

Factors that influence the total quantity of a good or service that consumers in a market are willing and able to purchase at various prices.