The Process of Selling Certain Issues in a Portfolio and Purchasing

question 32

Multiple Choice

The process of selling certain issues in a portfolio and purchasing new ones to replace them is known as

• A) portfolio revision.
• B) market timing.
• C) red herring baiting.
• D) dollar cost averaging.

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Definitions:

Optimal Choice Point

In decision theory and economics, the point at which the decision maker achieves the best possible outcome under given constraints.

Budget Constraint

The limitations on the consumption bundles that a consumer can afford given their income and the prices of goods and services.

Indifference Curve

A graph showing combinations of goods among which a consumer is indifferent, meaning they give the consumer the same level of satisfaction.

Indifference Curves

Graphical representations in microeconomics showing different combinations of goods or services between which a consumer is indifferent.