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.
The best time to buy a stock is when its price chart is closest to its _______.
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Support level. The best time to buy a stock is when its price chart is closest to its support level.
4.
Which of the following is a risk of the buy and hold strategy?
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High volatility. This could lead to heavy losses.
5.
Which type of allocation changes assets in response to short-term market changes?
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Tactical asset allocation. Tactical asset allocation changes assets in response to short-term market changes.