A Market Timer Would Be Expected to Have a Portfolio

question 54

Multiple Choice

A market timer would be expected to have a portfolio with

• A) a beta of 1.4 if an up market is anticipated.
• B) a beta of 1.2 if a down market is anticipated.
• C) a beta of .8 if an up market is anticipated.
• D) little turnover.

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Definitions:

Mean-Level

A statistical term referring to the average value of a set of data, indicating the central tendency.

Life Course

An approach in sociology and psychology that studies individuals and their trajectories through life, taking into account the social, psychological, and historical contexts that influence them.

External Factors

Elements outside an individual that can affect their behavior, decisions, and well-being, such as social, economic, and environmental influences.

Own Personalities

The unique set of traits, behaviors, and attitudes that characterize an individual.