Strategy Intermediate: Market Timing

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1.
A stock that has its performance tied to economic trends is called a(n) _______.
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Cyclical stock. A cyclical stock moves up and down with trends in the overall economy.
2.
When you sell short, you hope share prices will _______.
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Fall. You sell short to make money on the falling price of a security.
3.
A mutual funds volatility may be reduced by market timing.
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True. When used skillfully, market timing can reduce a mutual funds volatility.
4.
One advantage of market timing is that it gives you a strategy.
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True. It gives you a strategy you can use.
5.
The indicator that measures average data over time is called the ______.
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Moving average. A moving average covers a period of time.