A Market Timing Strategy Is One Where Asset Allocation in the Stock

question 83

Multiple Choice

A market timing strategy is one where asset allocation in the stock market __________ when one forecasts the stock market will outperform treasury bills.

• A) decreases
• B) increases
• C) remains the same
• D) may increase or decrease

---

Definitions:

Planetary Gearset

A gearset consisting of three elements: a sun gear, planetary carrier (containing three or more planetary gears), and a ring gear (annulus). The three separate elements intermesh, and the hold/release status of each determines the output ratios. Also known as an epicyclic gearset.

Stationary Member

A component of a mechanical system that remains fixed in position while other parts move around or relative to it.

Planetary Gearsets

A system of gears consisting of one or more outer gears (planet gears) revolving around a central (sun) gear, used in automatic transmissions.

Minimum Number

The smallest quantity or value in a set or required to accomplish a certain task.