Which of the Following Is Considered a Strategy for Timing

question 48

Multiple Choice

Which of the following is considered a strategy for timing the market and adding value to actively managed portfolios?

• A) Time the markets by shifting between different types of securities based on market forecasts and estimated risk premiums.
• B) Shift funds between the various equity sectors, industries, investment styles, etc., in order to take advantage of the "hot" concept before the remainder of the market does.
• C) Individual stockpicking in order to buy low and sell high.
• D) Choices a and b only
• E) All of the above

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Definitions:

Season Tickets

Long-term passes offered at a reduced rate, granting the holder access to a series of events or entry to a venue.

Price

The monetary equivalent expected, required, or delivered as a transaction for something.

Law of Demand

An economic principle stating that as the price of a good increases, the demand for that good decreases, and vice versa.

Steak

A cut of meat, typically beef, that is sliced perpendicular to the muscle fibers, often grilled or pan-fried.