The Objective of the Market Timing Strategy Is To

question 47

Multiple Choice

The objective of the market timing strategy is to:

• A)predict changes in stock prices in order to earn a quick profit by buying low and selling high.
• B)minimize risk by getting completely out of the stock market when stock prices fall and investing heavily once prices begin to rise.
• C)quickly identify new companies with long-term growth potential and buy their stock before other investors notice them.
• D)hold a diversified portfolio of stocks for a long period of time in order to take advantage of the long-run upward trend in the stock market.