Strategy Intermediate:
Market Timing
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Choose wisely. There is only one correct answer to each question.
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1.
Most portfolio managers do not use market timing.
Choose wisely. There is only one correct answer.
True
False
False. Most portfolio managers do use market timing.
2.
The best time to buy a stock is when its price chart is closest to its _______.
Choose wisely. There is only one correct answer.
Resistance level
Support level
Market volume
Support level. The best time to buy a stock is when its price chart is closest to its support level.
3.
A mutual funds volatility may be reduced by market timing.
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True
False
True. When used skillfully, market timing can reduce a mutual funds volatility.
4.
Which of the following is a risk of the buy and hold strategy?
Choose wisely. There is only one correct answer.
High taxes
Low volatility
High volatility
Difficulty of management
High volatility. This could lead to heavy losses.
5.
Market timing uses fundamental analysis to predict market changes.
Choose wisely. There is only one correct answer.
True
False
False. Market timing uses technical analysis to predict market changes.
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