Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A)Market timers charge 1 1/2 percent to 3 percent of the dollar value of the funds they manage.
• B)Early research indicates that market timers must be evaluated as a group.
• C)Since market timers offer a relatively new service, it is hard to evaluate long-term performance.
• D)The true test of market timers is the ability to increase the investor's return during good times and keep that return during bad times.
• E)A market timer helps investors decide when to switch from one fund to another.

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Definitions:

Industrially Advanced Nations

Countries that have highly developed industries and infrastructure, often characterized by high levels of income, technological innovation, and standard of living.

Managed Float

A currency exchange rate policy where the central bank allows the currency value to fluctuate in the foreign exchange market but intervenes to prevent excessive movements.

Fixed Rate System

A monetary system in which exchange rates are set and maintained at a certain level by a government or central bank.

Flexible Exchange Rates

A system in which the worth of a currency is permitted to vary based on the foreign exchange market, free from direct governmental interference.