Moving Money in and Out of the Market Based on Your

question 37

Multiple Choice

Moving money in and out of the market based on your market expectations is called ________ and tends to lead to returns that are ________ than the overall market return, assuming that the market is relatively efficient.

• A)asset allocation; higher
• B)asset allocation; lower
• C)market timing; higher
• D)market timing; lower
• E)security selection; higher

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Definitions:

Merit Pay Plans

A company’s compensation strategy that rewards employees based on their performance and achievements rather than their job position or seniority.

Wage Incentive Plans

A compensation strategy designed to motivate employees to higher performance through financial rewards based on productivity or efficiency.

Blue-collar Jobs

Refers to employment that typically involves manual labor and skill trade occupations, often requiring physical work rather than office-based tasks.

Possible Selves

The various components of the self-concept that represent what individuals could become, what they would like to become, and what they are afraid of becoming.