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:

Discrimination

The unjust or prejudicial treatment of different categories of people, often based on race, age, or gender.

Subtyping

Subtyping is a cognitive process where individuals adjust their stereotypes by creating subcategories for group members who do not fit the prevalent group stereotypes.

Stereotyping

The act of categorizing individuals into specific groups based on generalized beliefs, which may not accurately reflect reality.

Prejudice

Preconceived opinions or attitudes towards people or groups without factual basis or actual experience.