What Is the Objective of the Market Timing Strategy

question 150

Multiple Choice

What is the objective of the market timing strategy?

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

---

Definitions:

Survival Value

The degree to which something (behavior, trait, or mechanism) enhances the chances of survival and reproduction in a given environment.

Human Expression

The process by which humans convey thoughts, feelings, and concepts through verbal or nonverbal means.

Innate

Inborn or natural characteristics and instincts not acquired or learned.

Social Motives

The driving forces behind people's engagement in social behavior, including needs for affiliation, achievement, and power.