The Objective of the Market Timing Strategy Is to Do

question 160

Multiple Choice

The objective of the market timing strategy is to do which of the following?

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

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Definitions:

Disruptive Action

Activities or strategies intended to interrupt or significantly alter the status quo in a particular context.

Escalation

The process of a conflict intensifying or becoming more severe, often leading to further complications.

Inadvertent Revelation

An unintentional disclosure of private or sensitive information, typically leading to unforeseen consequences.

Distributive Bargaining

A negotiation strategy in which one party's gain is the other party's loss, focusing on dividing a limited amount of resources.